The U.S. economy is not a perfectly competitive market. There are costs associated with negotiating contracts, enforcing agreements, taxes and less than perfectly competitive firms. Nevertheless, according to Wallis and North (1986), the U.S
economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP between 1890 and 1970. Indicate whether the statement is true or false
True
Economics
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A negative externality such as pollution can be corrected by
A) a subsidy to producers. B) a tax on producers. C) a subsidy to consumers. D) a stimulus to production.
Economics
Other things being constant, when a firm sells new shares of stock, the
a. supply of the stock increases and the price decreases. b. supply of the stock decreases and the price increases. c. demand for the stock increases and the price increases. d. demand for the stock decreases and the price decreases.
Economics