The existence of positive externalities in the consumption of a good implies that:
a. the social supply curve of the good lies to the right of the private supply curve
b. the government will need to provide subsidies to ensure a socially efficient level of consumption.
c. the socially efficient quantity of the good will be less than the market equilibrium quantity.
d. the good generates an external cost.
e. the market equilibrium price of the good will be greater than the social equilibrium price.
b
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An increase in the nominal interest rate creates a ________ the money demand curve, and an increase in real GDP creates a ________ the money demand curve
A) movement down along; leftward shift of B) rightward shift of; movement up along C) movement up along; rightward shift of D) leftward shift of; rightward shift of
Your text mentions several ways that international trade flows are qualitatively different than they were a century ago. Which of the following is NOT one of those ways?
A) Manufactured goods are more important than the were in the past. B) Firms' investment spending on capital goods is more important than in the past. C) International trade in raw commodities and agricultural products is more important than it was in the past. D) It is possible to trade some types of services in a way that was not possible in the past. E) Multinational corporations play a bigger role in production than they did in the past.