If a positive externality exists, __________ in order for the socially optimal output to be reached.
A. supply needs to decrease
B. demand needs to increase
C. demand needs to decrease
D. a and c
E. none of the above
Answer: B
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With regard to colonial land settlement and the land beyond the Appalachians,
(a) secure land titles had to come from established authority; land typically could not be claimed simply by "squatting" on it. (b) throughout most of the colonial period, authority over the land beyond the Appalachians was not easy to establish because both the English and the French laid claim to most of the Mississippi watershed. (c) the original grants of land to colonial settlers from the crown had been "from sea to sea." (d) all of the above are true.
Community-wide poverty:
A. is nonexistent in the developed world. B. creates problems beyond those faced by poor individuals living in wealthier communities. C. only creates problems in less wealthy countries. D. None of these is true.
The money multiplier is equal to:
A. the government spending multiplier. B. the marginal propensity to consume. C. the reserve ratio. D. 1/(reserve ratio).
The short-run market supply curve shows the relationship between the market price and the quantity supplied in the short run.
Answer the following statement true (T) or false (F)