In the presence of a negative externality
a. the market marginal benefit curve lies above the market supply curve
b. a market will produce less than the efficient quantity
c. the market price will be too high for an efficient solution to exist
d. the marginal social cost curve lies above the market supply curve
e. Pareto optimality is automatically guaranteed
A
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A one-year Treasury bill with an annual yield of 10 percent and a price of $909.09 has a face value of
A) $900. B) $1,000. C) $980. D) $1,020.
The production possibilities curve demonstrates the basic economic principle that:
a. market-based economies are more efficient. b. supply will determine demand in the economy. c. the production of more capital goods this year will cause the economy to produce less consumption goods next year. d. to produce more of any one thing, assuming full employment, the economy must produce less of something else. e. to produce more consumption goods this year requires the production of more capital goods this year.