If a product provides a positive externality, a duopoly
A) will provide more social welfare than a monopoly.
B) will provide less social welfare than a monopoly.
C) will provide the same social welfare as a monopoly.
D) introduces an interesting and untested twist to the externality story.
A
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A customs union is a(n)
a. tax on an imported good b. union of similarly skilled workers c. group of countries that agree on common trade policies d. union of countries with similar customs e. agreement that affects intra-country trade
If the aggregate supply curve is the horizontal an increase in government spending will result in which of the following?
A) Increase/Increase B) Increase/No change C) Increase/Decrease D) No change/Increase E) No change/No change
In an article regarding Bangladesh's economy, the author suggests that the government give tax breaks on investment dollars, research and development, and donations to educational institutions. The increase in investment is considered __________ and will generate a larger increase in __________.
a) equilibrium spending; autonomous expenditure b) autonomous expenditure; induced expenditure c) induced expenditure; autonomous expenditure d) autonomous expenditure; multiplier spending
On a straight line demand curve, total revenue is maximized where demand is unitary elastic.
Answer the following statement true (T) or false (F)