Which of the following statements is not correct?
a. Government policies may improve the market's allocation of resources when negative externalities are present.
b. Government policies may improve the market's allocation of resources when positive externalities are present.
c. A positive externality is an example of a market failure.
d. Without government intervention, the market will tend to undersupply products that produce negative externalities.
d
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The unemployment rate is defined as the:
A) percentage of civilian non-institutionalized population aged 14 or over that is unemployed. B) percentage of labor force that is unemployed. C) percentage of total population that is unemployed. D) percentage of civilian non-institutionalized population aged 12 or over that is unemployed.
If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
A) demand for the product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of its product will be lower in the future than it is today. D) price of inputs will be lower in the future than they are today.