If social cost exceeds private cost, there is
A) underproduction of a good.
B) a negative externality.
C) a positive externality.
D) too little economic profit in the activity.
Answer: B
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If the U.S. government imposes a tariff on imported steel, who else besides U.S. steel producers gains from the tariff?
A) U.S. steel consumers B) the U.S. government C) U.S. importers of steel D) foreign exporters of steel E) the foreign government
A decrease in supply _____ price and _____ the quantity sold.
Fill in the blank(s) with the appropriate word(s).
If you look for a job for eighteen months after graduation, but fail to generate an offer, even after lowering your expectations, the economy is probably in the business cycle phase called a:
A. recession. B. peak. C. boom. D. recovery.
Foreign direct investment is when:
A. when a foreign government directly invests into a firm. B. investors buy foreign financial assets like stocks, bonds, or government securities. C. investment is funded by foreign sources but operated domestically. D. a firm runs part of its operation abroad or invests in another company abroad.