Consider two goods - one that generates external benefits and another that generates external costs. The actual market outcome would
a. result in a price that is lower than the efficient price for both goods.
b. result in a price that is higher than the efficient price for both goods.
c. result in a price that is lower than the efficient price for the good with an external benefit and a price that is higher than the efficient price for the good with an external cost.
d. result in a price that is higher than the efficient price for the good with an external benefit and a price that is lower than the efficient price for the good with an external cost.
A
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Which of the following models has as its central idea that workers and firms have rational expectations?
A) the new classical model B) the monetarist model C) the real business cycle model D) the new Keynesian model
Within the balance of payments, a current account deficit is offset by a:
A) financial account deficit. B) financial account surplus. C) budget deficit. D) budget surplus.