The greenhouse effect represents an external cost.
Answer the following statement true (T) or false (F)
True
An external cost is a cost of a market activity borne by a third party. Pollution of all kinds imposes costs on innocent bystanders.
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Refer to Figure 8.6. Curve 1 is Outdoor Equipment's A) marginal cost curve. B) average variable cost curve. C) average total cost curve. D) average fixed cost curve.
Which of the following is a liability of a family?
A. Checking account balance B. Mortgage C. Share of stock D. House
The velocity of money is:
A. money supply divided by prices. B. spending divided by output. C. required monetary reserves divided by income. D. GDP divided by the money supply.
The second-order condition for maximizing net benefits is:
A. d(MB)/dQ < d(MC)/dQ. B. d2N/dQ2 < 0. C. d2B/dQ2 < d2C/dQ2. D. All of the statements associated with this question are correct.