Consider a setting in which there is a negative externality, but no positive externality. It follows that
A) the market outcome is inefficient.
B) the market outcome is efficient.
C) MSC > MPC
D) MPC > MSC
E) a and c
E
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When the economy is in short-run equilibrium, there will be ________ output gap.
A. only a recessionary B. no C. either a recessionary or an expansionary D. only an expansionary
Refer to the payoff matrix below. If each cell has a probability of occurrence of 0.25, what are Best Treats' expected profits?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) $3 B) $4.5 C) $2 D) $3.5
Which of the following central bank policies will raise the money supply?
a. Raising the reserve ratio. b. Buying government securities. c. Selling foreign currency in the foreign exchange market. d. Raising the discount rate. e. All of the above.
Labor-market discrimination based solely on age is illegal in the United States
a. True b. False Indicate whether the statement is true or false