If the social value of producing a good is always higher than the private value of producing it, then there is a
a. negative externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
b. negative externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
c. positive externality associated with the production of the good, and the market equilibrium quantity of the good is less than the socially optimal quantity.
d. positive externality associated with the production of the good, and the socially optimal quantity of the good is less than the market equilibrium quantity.
c
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According to Figure 2.5, the United States civilian labor force participation rate in June 2013 was ________
A) 59% B) 43.8% C) 66.7% D) 64.0% E) none of the above
The effect time lag of fiscal policy refers to
A. the difficulty in getting the President and the Congress to agree on an appropriate policy. B. the time between the onset of a policy and when the policy has impact on the economy. C. the time needed for Congress to enact a policy. D. the delay in recognizing an economic problem.