If there is a negative externality in production, ______.
a. firms bear the entire cost
b. firms share the costs with others
c. others bear the entire cost
d. government bears the entire cost
b. firms share the costs with others
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When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________
A) win; win B) lose; win C) lose; neither win nor lose D) lose; lose E) win; lose
A network externality refers to a situation where:
A) the value of a product increases as more consumers start to use it. B) firms collude to sell products at a price higher than the equilibrium market price. C) a firm that has control over key resources auctions the resources off to other firms. D) the government interferes to prevent the concentration of market power in the hands of a few firms.
An increase in the real money supply will have its maximum effect on the equilibrium level of GDP when the
A) LM curve is vertical. B) LM curve is horizontal. C) IS curve is vertical. D) IS curve is negatively sloped.
The federal income tax code of the United States is
A) progressive. B) proportional. C) regressive. D) progressive for individuals but proportional for married couples.