When positive externalities are present, it means that:
A. individuals don't take into account all the benefits associated with their market choice.
B. society bears part of the cost borne of private transactions.
C. individuals consume more than the social optimum.
D. All of these statements are true.
A. individuals don't take into account all the benefits associated with their market choice.
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In the short run, a supply shock that shifts the short-run aggregate supply curve leftward raises the price level and decreases real GDP
Indicate whether the statement is true or false
The flu vaccination example in Section 1.1 of the textbook is an example of how policy makers may cope with
A) scarcity of medical treatment. B) scarcity of patients. C) scarcity of policy makers. D) answering the question of how to produce.