The theory that private negotiations have the potential to make some people better off without making anyone worse off when negative externalities are present is known as:
a. the Negative Externality Theorem.
b. the Sexton Theorem

If the public is not sure about the central bank's motives, then

A) initial releases of data may be less accurate than later data releases. B) the predominant source of shocks to the economy must be shocks to the LM curve. C) central bankers should try to stabilize the inflation rate. D) modern macroeconomic modeling techniques will fail.

The supply of labor in the classical system is a function of the

a. marginal product of labor. b. real wage. c. the public's preference for leisure. d. money wage. e. b and c