conncect chapters 4 5 6

conncect chapters 4 5 6 - 1. If the aggregate income of...

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If the aggregate income of households is $300 billion, consumption is $210 billion, and personal taxes are $60 billion, then personal saving: is $70 billion. is $30 billion. is $40 billion. cannot be determined from the information given. 2. In 2007, personal saving comprised what portion of U.S. household income? negative 2 percent.positive 1 percentpositive 5 percentpositive 12 percent In a competitive market: external benefits will always exceed external costs. resources will be misallocated if government does not properly adjust demand and supply for large external costs and benefits. resources will be allocated efficiently only if external benefits equal external costs. an efficient allocation of resources is realized even where there are large external costs and benefits. Negative externalities arise: when firms pay more than the opportunity cost of resources. when the demand curve for a product is located too far to the left. when firms "use" resources without being compelled to pay for their full costs.
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This note was uploaded on 03/24/2010 for the course ECO 114 taught by Professor Shannan during the Fall '08 term at Bryant.

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conncect chapters 4 5 6 - 1. If the aggregate income of...

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