Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?
A) the private cost of production
B) the social cost of production
C) the external cost of production
D) the explicit cost of production
Answer: B
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When the price level rises and the money wage rate does not change,
A) the quantity of potential GDP increases because the quantity of real GDP supplied increases. B) the quantity of real GDP supplied increases as more businesses start up and potential GDP does not change. C) existing businesses do not change their level of output. D) profits fall and more businesses fail. E) the quantity of real GDP supplied decreases as more businesses fail and potential GDP does not change.
Which of the following will tend to result in more proven oil reserves?
A) rising oil prices B) development of oil substitutes C) conservation measures D) all of the above
The financial system is primarily a means by which
A) funds are transferred from savers to borrowers. B) money is put into circulation. C) the government puts into operation its plans for the economy. D) business firms distribute their goods.
The financial chaos of the antebellum period clearly impeded economic growth and development in the long run
Indicate whether the statement is true or false