Markets tend to overallocate resources to the production of a good when
A) there are negative externalities.
B) there are positive externalities.
C) there are public goods produced.
D) equilibrium occurs.
Answer: A
Economics
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A self-correcting mechanism tending to bring a country's balance of payments into equilibrium exists under __________ exchange rate systems
A) fixed and floating B) floating, but not fixed C) fixed, but not floating D) neither fixed nor floating
Economics
If the inverse demand function for a monopoly's product is p = 100 - 2Q, then the firm's marginal revenue function is
A) -2. B) 100 - 4Q. C) 200 - 4Q. D) 200 - 2Q.
Economics