Which one of the following statements is TRUE?
A. In the short run, the level of output is determined by demand.
B. In the long run, the level of output is determined by demand.
C. In the long run, the aggregate supply curve is horizontal.
D. Where aggregate demand and aggregate supply intersect is always the full-employment level of output.
Answer: A
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Explain why the transactions costs involved with trying to acquire 100 acres of land from one landowner are probably going to be less than the transactions costs involved with trying to acquire 10 acres of land from each of 10 different landowners
What will be an ideal response?
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.