In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price

Which of the following is NOT one of the ways a budget surplus can be used?

A) to allow private saving to fall without any need for a decline in total investment B) to stimulate domestic investment C) to reduce foreign investment D) to increase the amount of borrowing from foreigners

A closed shop is one in which

A) a union is prohibited. B) some members belong to the union while others do not. C) belonging to a union is a condition of employment. D) the union is a co-manager of the day-to-day operations of the firm.