When price is above the equilibrium level, suppliers offer more than demanders wish to buy
a. True
b. False
Indicate whether the statement is true or false
True
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"Suppose the market for aluminum is perfectly competitive and unregulated. If aluminum factories emit pollution, the marginal social cost of aluminum is less than the market price". True or false? Explain
What will be an ideal response?
If a negative externality were present in a market, the social benefit curve would be:
A. above the private demand curve. B. below the private demand curve. C. the same as the private demand curve. D. Cannot say without more information.
In the long run a reduction in the money supply growth rate affects
a. the inflation rate and the natural rate of unemployment. b. the inflation rate but not the natural rate of unemployment. c. neither the inflation rate nor the natural rate of unemployment. d. the natural rate of unemployment, but not the inflation rate.
If aggregate expenditures increase by $12 billion and equilibrium real GDP consequently increases by $48 billion, then the marginal propensity to save in the economy must be
A. 0.25. B. 0.2. C. 0.75. D. 0.8.