Transaction costs
a. can keep private parties from solving externality problems.
b. are incurred in the production process due to externalities.
c. increase when taxes are imposed to correct negative externalities.
d. are eliminated when the government intervenes in a market with externalities.
a
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When real GDP exceeds potential GDP, then the economy has
A) an inflationary gap. B) a below-full-employment equilibrium. C) a recessionary gap. D) None of the above answers are correct.
The demand for salt is relatively price inelastic, while the demand for pretzels is relatively price elastic. How can you best explain why?
What will be an ideal response?
How do the Bureau of Labor Statistics and the Bureau of the Census estimate U.S. unemployment each month?
a. They contact each state's unemployment office and gather data on new claims for unemployment. b. They randomly survey about 60,000 U.S. households to determine how many people are in the labor force, and what proportion of them is unemployed. c. They track released prisoners. These agencies adjust released prisoner employment unemployment rate proxy (PURP). d. None of the above are correct.
Money market mutual funds (MMMFs) accounts are
a. M1 money b. M2 and gold backed paper c. gold backed paper d. near money e. not money