In an unregulated competitive market, the presence of marginal external cost of a good or service results in overproduction
Indicate whether the statement is true or false
TRUE
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The fundamental limitation on public expenditures during a specific time interval is expressed by
A. the governing political party. B. the size of the tax base. C. the government budget constraint. D. no such limitation exists.
Because everybody lives under uncertainty, everybody is
A) less than perfectly informed. B) ignorant of something. C) a speculator. D) all of the above. E) none of the above.
As the market price decreases, the slope of the total revenue curve of a perfectly competitive firm becomes steeper
a. True b. False Indicate whether the statement is true or false
Based on the graph showing the run-up of nominal home prices, between 2000 and 2006, home prices increased at______.
a. about the same pace they always had
b. a much slower pace than they always had
c. a much faster pace than they always had
d. a slightly faster pace than they always had