When there is an externality in a market
A) government intervention may increase economic efficiency.
B) the government should use price controls to enable the market to reach equilibrium.
C) the externality will move the market to an economically efficient equilibrium.
D) the externality will cause the market price to be less than or greater than the equilibrium price.
A
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Refer to the scenario above. In this game, the dominant strategy equilibrium occurs if ________
A) Firm A chooses Strategy Y, and Firm B chooses Strategy X B) Firm B chooses Strategy Y, and Firm B chooses Strategy X C) Both Firm A and Firm B choose Strategy X D) Both Firm A and Firm B choose Strategy Y
Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital stock is
A) constant. B) growing at a rate of gA. C) growing at a rate of gN. D) growing at a rate of gA + gN. E) none of the above