If a positive externality were present in a market, the social benefit curve would be:
A. the same as the private demand curve.
B. above the private demand curve.
C. below the private demand curve.
D. Cannot say without more information.
Answer: B
You might also like to view...
Mutual funds that attempt to mimic the performance of a broad market index, such as the Dow Jones Industrial Average, are known as:
a. socially responsible funds. b. index funds. c. equity funds. d. fixed-income funds. e. money market funds.
In the classical model there is complete crowding out when government spending increases, but in the short-run macro model there is only partial crowding out
a. True b. False
Adding government to the Barro model affects the household budget constraint by
a. adding the present value of real transfers net of real taxes as a source of funds. b. adding the present value of real transfers plus real taxes as a use of funds. c. adding and subtracting the present value of real transfers net of real taxes as a source of funds, for no net effect. d. subtracting the present value of real transfers net of real taxes as a use of funds.
The largest net international lenders since 1980 have been
A. Russia and Saudi Arabia. B. the United Kingdom and France. C. the United States and china. D. Japan and Germany.