Author Question: If consumers were able to receive the full social benefits associated with the consumption of goods ... (Read 73 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
If consumers were able to receive the full social benefits associated with the consumption of goods involving positive externalities, other things being equal, there would probably be:
 a. an increase in consumption.
 b. a decrease in consumption.
 c. a greater misallocation of resources.
 d. a decrease in the market price of the product.

Question 2

A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve will:
 a. result in no net change in AD once people's expectations adjustments have been accounted for.
 b. shift AD in the opposite direction intended once people's expectations adjustments have been accounted for.
  c. be anticipated and compensated for, causing no significant effect on real or nominal GDP or employment.
  d. have to be a surprise to change real output in the intended direction.



macybarnes

  • Sr. Member
  • ****
  • Posts: 312
Answer to Question 1

a

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Malaria was not eliminated in the United States until 1951. The term eliminated means that no new cases arise in a country for 3 years.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

For a complete list of videos, visit our video library