Externalities are failures of

A. the market to correctly price resources.
B. firms and consumers to make rational tradeoffs.
C. firms to make rational tradeoffs.
D. consumers to make rational tradeoffs.


Answer: A

Economics

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A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower

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Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if

A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.

Economics

Which of the following statements is correct for an open economy with a trade surplus?

a. The trade surplus cannot last for very many years. b. The trade surplus must be offset by negative net capital outflow. c. The trade surplus implies that the country's national saving is greater than domestic investment. d. None of the above is correct.

Economics

Average total cost is __________ divided by the number of units of output.

A) total cost B) total variable cost C) total fixed cost D) marginal cost

Economics