If social cost exceeds private cost, there is
A) underproduction of a good.
B) a negative externality.
C) a positive externality.
D) too little economic profit in the activity.
B
Economics
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Suppose there is an increase in the expected future interest rate. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period
Economics
When a good is nonexcludable, then individuals
A. will purchase the good for more than what it cost to produce the good. B. can obtain the benefits of the good without paying for it. C. have an incentive to become free riders. D. will purchase more than the optimum amount. E. b and c
Economics