When the production of a good creates external costs,
A. Society's collective well-being will be lower.
B. Production of the good will be lower.
C. The level of environmental pollution will be lower.
D. Profits for the producer of the good will be lower.
Answer: A
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Which organization determines procedures for the settlement of international trade disputes?
A) World Bank B) World Trade Organization C) International Monetary Organization D) International Bank for Reconstruction and Development E) The League of Nations
The objective of supply-side economics is to _____________. The problem, said the supply-siders, was that ___________ were hurting the incentive to work and invest.
Fill in the blank(s) with the appropriate word(s).
If a Central Bank wants to increase the supply of money in the economy, it should:
(a) Lower the reserve requirement. (b) Lower the rate of discount. (c) Buy government bonds in the market. (d) Do any, or all of the above.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.