Which of the following exists when a market activity results in direct costs or benefits to someone who is not part of the marketplace decision to undertake the activity?
A. Externality
B. Marginal cost
C. Property rights
D. Specificity rule
Answer: A
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What is the present value of $100 three years from now at an interest rate of 6%?
A) $83.96 B) $82 C) $94.34 D) $119.10
Use the above figure. A leftward shift in the demand curve, ceteris paribus, would result in
A) a dollar appreciation. B) a dollar depreciation. C) a euro appreciation. D) increasing the equilibrium quantity of the euro.
Which of the following mechanisms helps output to return to potential after a supply shock?
a. A change in the nominal wage b. Changes in business decision making strategies c. Changes in the capital stock d. The rigidity of the price level e. Changes in inventories
A competitive market will typically experience entry and exit until accounting profits are zero
a. True b. False Indicate whether the statement is true or false