The social costs of an activity are greater than the private costs of the activity when
A) a person does not pay all costs associated with a particular resource-using activity.
B) the internal costs of the resource-using activity are less than the external costs of the activity.
C) the internal costs of the resource-using activity are positive.
D) the external costs of the resource-using activity are zero.
A
You might also like to view...
If a 50 cent increase in price causes the amount purchased to fall by 50 units per week, we know
A) almost nothing about the price elasticity of demand. B) demand is relatively elastic. C) demand is relatively inelastic. D) demand is unit elastic. E) the demand does not obey the law of demand.
The concept of opportunity cost exists because
A) of scarcity. B) goods have different prices. C) of shortages. D) the value of services is hard to determine.
A major disadvantage of the corporate form of business is limited liability
a. True b. False
New classical economists believe that
A. wage and price controls are needed to help control inflation. B. governmental intervention is destabilizing and harmful to the economy. C. the federal government has abdicated its responsibility to promote a non-inflationary full employment economy. D. antitrust laws should be toughened in order to restrain inflation.