Externalities always consist of benefits that are not confined to the person or organization that decides how much of a good to produce or consume.
Answer the following statement true (T) or false (F)
False
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If the demand effect dominates during a currency depreciation, then
A. real GDP should fall. B. real GDP should increase. C. the price level should fall. D. net exports should decrease.
Adverse selection and moral hazard are not problems associated with market transaction
Indicate whether the statement is true or false
Which of the following statements is TRUE?
a. The HeckscherOhlin model offers a reasonable explanation of the pattern of trade and the gains from trade. b. The HeckscherOhlin trade model does not offer an explanation of the pattern of trade. c. The HeckscherOhlin trade model does not offer an explanation of the gains from trade. d. The Riparian trade model (with labor as the only input) offers a better explanation of the pattern of trade and the gains from trade than the HeckscherOhlin model.
Good X is a normal good and its demand is given by Qxd = ?0 + ?XPX + ?YPY + ?MM + ?HH. Then we know that
A. ?Y > 0. B. ?X > 0. C. ?M > 0. D. ?H > 0.