In a market, a distortion does not exist if
A. the social marginal benefit is less than the social marginal cost.
B. the social marginal benefit is equal to the social marginal cost.
C. the social marginal benefit is greater than the social marginal cost.
D. the private marginal benefit is greater than the social marginal benefit.
Answer: B
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Over time, the price of personal computers has fallen dramatically. All else constant, this would lead us to expect that demand for personal computers has become more price elastic
Indicate whether the statement is true or false
Open market sales shrink ________ thereby lowering ________
A) the money multiplier; the money supply B) the money multiplier; reserves and the monetary base C) reserves and the monetary base; the money supply D) the money base; the money multiplier