If the production of a good generates a positive externality, then:
A. there will be deadweight loss at the market equilibrium quantity.
B. production of the good is harmful.
C. total economic surplus will be maximized at the market equilibrium quantity.
D. the government should tax producers of the good.
Answer: A
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The "underground economy" is also referred to as
A) the informal sector. B) the halfway economy. C) the net domestic product economy. D) the formal sector.
What is the primary role of individuals as participants in the money market?
A) Individuals do not participate in the money market. B) Many individuals issue money market instruments to lend excess cash. C) Individuals often use money market instruments to finance home and auto purchases. D) Individuals purchase money market instruments via money market mutual funds.