If an external benefit is present in the consumption of a good or service, then
A) there can be no external cost.
B) the marginal social benefit is greater than the marginal private benefit.
C) the marginal social benefit is equal to the marginal private benefit.
D) the marginal private benefit is equal to the marginal social benefit plus the marginal external benefit.
E) the marginal external benefit is equal to the marginal private benefit minus the marginal social benefit.
B
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The demand for money will fall for each of the following reasons, except
A) more ATMs. B) higher real GDP. C) lower interest rates on transactions accounts at banks. D) more risky banks.
Trade restrictions have been defended on the grounds that they
a. raise prices domestically and thus benefit consumers b. increase imports c. lower prices domestically and thus benefit consumers d. decrease product quality in domestic markets e. protect domestic infant industries