Externalities exist because
A) private costs differ from social costs.
B) private costs are equal to social costs.
C) government has created them.
D) they are a function of socialism.
A
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One problem with deflation is that it can raise the real value of debt
Indicate whether the statement is true or false
The concept of comparable worth is not a radical departure from market economics
Indicate whether the statement is true or false
One way to achieve efficiency in a market with a negative externality is
a. to raise the market demand curve to the position of the marginal social cost curve b. to apply the Coase theorem c. to lower the marginal social cost curve to the position of the market supply curve d. to eliminate all side payments e. to raise the market supply curve to the position of the marginal social cost curve
A country that frequently uses capital controls:
A. will attract more investment. B. decreases the risk for foreign investors. C. increases the risk for foreign investors. D. should see lower interest rates on its domestic bonds and lower prices.