When a negative externality exists, the market is said to underproduce the good connected with the negative externality.
Answer the following statement true (T) or false (F)
False
You might also like to view...
The demand for capital is similar to the demand for labor in that
A) both are inelastic at high prices and elastic at low prices. B) both are derived demands. C) the marginal product of labor is derived from the marginal product of capital. D) the marginal revenue product curve for labor is the same as the marginal revenue product curve for capital.
Because there is a finite supply of a nonrenewable resource,:
a. it has inadequate substitutes. b. any use of that resource today will leave less available for tomorrow. c. such resources are replenished faster than they are consumed. d. the government subsidizes the extraction of such resources. e. any use of that resource today means the value of the resource will fall in the future.
Company X is considering different production methods. Assume each worker is paid $50 per hour and each machine costs $90 each. Which of the following will give them the best balance of workers and technology, based on cost?
a. 5 workers and 5 machines b. 7 workers and 4 machines c. 10 workers and 2 machines d. 15 workers and 1 machine
The members of the Federal Reserve's Board of Governors
a. are appointed by the president of the U.S. and confirmed by the U.S. Senate. b. serve six-year terms. c. are also the presidents of the regional Federal Reserve banks. d. share power equally, with no governor having any more influence or power than any other governor.