When there is an external cost, the unregulated market
A. minimizes public welfare.
B. overproduces the good or service.
C. underproduces the good or service.
D. reaches the most efficient solution.
Answer: B
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When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, what happens?
A) Older bonds will sell for more than their face value. B) Older bonds can still be sold at their face value. C) The market price of the older bond falls in the secondary market. D) The market price of the older bond rises in the secondary market.
Refer to Figure 1-1. Using the information in the figure above, calculate the percentage change in sales of alcoholic beverages between 2013 and 2016
A) 23.1% B) 23.8% C) 30% D) 42.9%
Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will ________ and employment of workers will ________.
A. decrease; increase B. decrease; not change C. increase; decrease D. increase; increase
The cost or benefit of a market activity borne by a third party is
A. A monopoly. B. An externality. C. A government directive. D. Black-market economic activity.