Externalities can cause the market mechanism to
a. malfunction.
b. improve.
c. operate efficiently.
d. move up toward the production possibility curve.
a
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A country is said to be in balance of payments equilibrium, when the sum of its current and its
A) non-reserved capital accounts equals zero. B) reserved capital accounts equals zero. C) non-reserved capital accounts equals to the surplus in the capital account. D) non-reserved capital accounts equals to the deficit in the capital account. E) non-reserved capital accounts is higher than the total capital account balance.
If nominal wages adjust slowly to changing economic conditions, then a decrease in the price level will cause the real wage rate to rise and employment and real output to fall. This description of the impact of a decrease in the price level on real output is used to explain:
What will be an ideal response?