If a negative externality exists, __________ in order for the socially optimal output to be reached.
A. supply needs to increase
B. supply needs to decrease
C. demand needs to increase
D. b and c
E. none of the above
Answer: B
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Gordon is a person who sells narcotics "on the street." This type of illegal activity ________.
A. causes GDP to be overstated B. is estimated and included in GDP figures C. is excluded from GDP figures D. would be considered double counting in calculating GDP
Political advocacy:
A. and political engagement can suffer from the free-rider problem. B. is not affected by the free-rider problem, but political engagement is. C. can suffer from the free-rider problem, but political engagement does not. D. and political engagement are not affected by the free-rider problem.
If the foreign import demand curve intersects the home country's export supply curve in its horizontal portion, then:
a. the home country will suffer a loss from international trade. b. the home country will not gain from trade. c. the home country will gain from trade. d. the foreign country will not gain from trade.
What is the difference between saving and savings?
What will be an ideal response?