When a business produces a product that creates external costs
A) the company produces a level of output larger than would be produced without the external cost.
B) the company produces a level of output smaller than would be produced without the external cost.
C) the company produces a level of output which would be the same as it would produce without the external cost.
D) the market provides the efficient level of output even with the existence of the external cost.
A
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Which of the following results in a movement upward along the supply curve for movies in theaters?
A) an increase in the price of movie tickets B) a decrease in the price of movie tickets C) a decrease in the price of downloaded movies D) a decrease in movie star salaries E) an increase in the number of theaters
The money demand curve will shift to the left if real GDP ________ or if the price level ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
False advertising ________ likely to be successful with newly built vacation rental homes on a remote island because the rental homes are a(n) ________ good.
A) is; credence B) is not; experience C) is; experience D) is not; credence
According to the above figure, the average propensity to save (APS) is zero at point
A) D. B) F. C) I. D) J.