If positive externalities are present in the production of a good, then society will:
a. produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit.
b. produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
c. produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
d. produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.
d
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The price of electricity consumption increased in a country. Since electricity is used for the production of various goods and services, this will lead to a ________, assuming all else equal
A) rightward shift of the labor demand curves of firms B) upward movement along the labor demand curves of firms C) leftward shift of the labor demand curves of firms D) downward movement along the labor demand curves of firms
If the equilibrium exchange rate of the dollar is 1.10 euros per dollar and currently the exchange rate is 0.90 euros per dollar, then there is a ________ of dollars that leads to ________
A) surplus; the supply curve of dollars shifting leftward B) shortage; a rise in the exchange rate C) surplus; a rise in the exchange rate D) shortage; the supply curve of dollars shifting rightward E) shortage; the demand curve for dollars shifting rightward