Refer to Figure 5-3. At the competitive market equilibrium, for the last unit produced
A) the size of the external cost is Pn - Po. B) the size of the external cost is Pm - Po.
C) the size of the external benefit is Pn - Po. D) the size of the external benefit is Pm - Po.
D
Economics
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The theory of portfolio choice indicates that factors affecting the demand for money include
A) income. B) nominal interest rate. C) liquidity of other assets. D) all the above.
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When a corporation decides to include its own corporate stock as part of the compensation for its employees, it is trying to solve the
a. adverse selection problem. b. principal-agent problem. c. lemons problem. d. signaling problem.
Economics