Which of the following occurs when an externality is internalized?
A) Higher social well-being
B) Higher private benefit
C) Larger deadweight loss
D) Higher returns to scale
A
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The fact that some people can afford to live in beautiful homes while others are homeless, is most directly an example of an economy facing the ________ part of one of the two big economic questions
A) "for whom" B) "when" C) "how" D) "why"
According to the natural rate hypothesis: a. a short-term as well as long-term trade-off exists between unemployment and inflation
b. economic fluctuations are the result of external negative and positive productivity shocks to the economy c. workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices. d. the economy will self-correct to the natural rate of unemployment.