If your lawn and shrubs were killed by the fumes from a nearby factory and you hired a lawyer to sue the polluting firm, your legal fees would be considered
A) external costs.
B) transactions costs.
C) the social costs of pollution.
D) sunk costs.
B
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The inputs used to produce cupcakes (e.g., flour, sugar, butter, and labor) are also used to produce cookies, cakes, muffins, pies and many other goods. This suggests that:
A. the elasticity of supply of cupcakes is relatively high. B. the elasticity of supply of cupcakes is relatively low. C. the supply curve for cupcakes is downward sloping. D. cupcakes are a normal good.
A market equilibrium might not maximize total economic surplus because:
A. in a market equilibrium individuals do not exploit all opportunities for individual gain. B. in a market equilibrium individuals do not act rationally. C. efficiency is not an important social goal. D. sometimes goods entail costs and benefits that do not fall on buyers and sellers.
A landlord named Jack chooses not to rent to a family because their income is below $30,000 per year. Considering this, Jack most likely ______.
a. will raise the rent to attract high income families. b. dislikes renting to large families c. has a well-maintained apartment building d. owns rent-controlled apartments
Immigration shifts the national demand curve for labor to the
A. left, because immigrants compete with native workers for jobs. B. right, because immigrants compete with native workers for jobs. C. left, because immigrants are consumers as well as workers. D. right, because immigrants are consumers as well as workers.