The net increase to total surplus when a negative externality is corrected or eliminated is due to:
A. the transfer of surplus from those affected by the externality to the consumer.
B. the reduced number of transactions in the market.
C. the transfer of surplus from consumer or producer to those affected by the externality.
D. None of these statements is true.
B. the reduced number of transactions in the market.
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Orange juice and cranberry juice are substitute goods. An increase in the price of orange juice results in a(n)
a. increase in the demand for orange juice b. increase in the supply of cranberry juice c. increase in the quantity demanded of orange juice d. increase in the demand for cranberry juice e. decrease in the quantity demanded of cranberry juice
Mr. Paque is a bear hunter for timber companies that want to diminish damage to trees done by bears in the spring. Due to a reduction in the bear population between 1995 and 2005, Mr. Paque finds fewer bears each year and additional hours spent hunting produce fewer additional bears. This means that Mr. Paque's (i) overall productivity has fallen; (ii) marginal product has fallen
a. i and ii b. i not ii c. ii not i d. neither i nor ii
Which of the following is not a feature of common stock?
A. Stockholders receive regular fixed payments on their shares. B. Stock holders are residual claimants. C. Stockholders have limited liability. D. Stockholders have voting rights.
The following are explanations of the Law of Demand, except:
A. Expectations effect B. Diminishing marginal utility C. Income effect D. Substitution effect