"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are no positive or negative externalities in the market.
B) is true only if there are positive externalities in production in the market.
C) is true in theory, but economic efficiency cannot be achieved in a real market.
D) is true only if there are no negative externalities in the market.
A
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To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation
What will be an ideal response?
Suppose output is $35 billion, government purchases are $10 billion, desired consumption is $15 billion, and desired investment is $6 billion. Desired savings is equal to
A) $2 billion. B) $10 billion. C) $14 billion. D) $16 billion.