For voluntary action to correct an externality
A. transaction costs are irrelevant.
B. transaction costs have to be low.
C. transaction costs have to be high.
D. transaction costs have to be split evenly between all of the parties involved.
Answer: B
Economics
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How is a budget line similar to a production possibilities frontier? How do they differ?
What will be an ideal response?
Economics
Using the simple Keynesian model with a consumption function of C = 200 + .9Y, an $10 change in desired investment leads to a change in equilibrium income of
A) $10. B) $100. C) $20. D) $90.
Economics