Because producers do not bear the external cost of pollution,
A) private production exceeds the economically efficient level.
B) the economically efficient level of production is achieved.
C) private production is below the economically efficient level.
D) the market price for the product being produced by the pollution-generating company is too high.
Answer: A) private production exceeds the economically efficient level.
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Refer to Figure 6-9. The data in the diagram indicates that DVDs are
A) luxury goods. B) inelastic goods. C) necessities. D) both luxury goods and inelastic goods. E) both necessities and inelastic goods.
Which of the following statements is false?
A. As the price paid for a bond rises, the yield declines. B. If you purchase stock from an individual that currently owns the stock, you are buying it in the secondary market. C. The yield on a bond is another term for the coupon rate on a bond. D. A rating of Aaa from Moody's is the highest bond rating given by that rating agency.
Money as a medium of exchange refers only to
A) currency. B) gold coins. C) anything that is generally accepted as payment for goods and services. D) checks at commercial banks.
Which of the following inputs is normally considered to be variable in the short run?
A) labor B) capital C) money D) time