13. Ceteris paribus means:

Choose the best answer.

A. allowing all other things to change.

B. making value judgments.

C. all other things unchanged.

D. differentiating between macroeconomics and microeconomics.

14. Economists are:

A. concerned with developing theories and interested in solving problems.

B. interested in solving problems but not concerned with developing theories.

C. reluctant to predict changes in variables such as prices, employment, and spending.

D. always in agreement on the best way to implement policy decisions.

31. If an economic activity results in external costs as well as private costs, economic theory would suggest that this activity should:

A. be taxed.

B. be prohibited.

C. be subsidized.

D. not be allowed.

33. If the market supply and demand curves for computers include all costs or benefits, then in this case:

A. too few of society's resources are being used to produce computers.

B. too many of society's resources are being used to produce computers.

C. the efficient amount of society's resources are being used to produce computers.

D. there is an external benefit to society from computer production.