Persons who argue that monetary and fiscal policy should be deliberately used to smooth out the business cycle are called

If a good has zero external costs, then

A) marginal social cost equal marginal private cost. B) marginal social cost is greater than marginal private cost. C) marginal social cost is less than marginal private cost. D) we need more information to determine the relationship between private and social costs.

An increase in the price of gasoline shifts the demand for tires to the

a. left, because gasoline and tires are substitutes. b. left, because gasoline and tires are normally used together. c. right, because gasoline and tires are substitutes. d. right, because gasoline and tires are normally used together.