With positive externalities, _____
a. the market equilibrium occurs at a lesser quantity than the socially optimal output
b. the market equilibrium occurs at a greater quantity than the socially optimal output
c. the social benefit curve lies below the private benefit curve
d. there is no deadweight loss
a
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In a barter system, we would expect to see
A) many different units of money. B) money and goods exchanged for each other. C) wide-spread financial institutions. D) goods traded directly for other goods and services.
Which factor will decrease the demand for loanable funds?
A. A change in the tax law to exempt savings from taxation B. Expansion of social insurance to cover more fully the cost of retirement C. A general business recession that produces high rates of unemployment D. A technological advance that increases returns on investments