If a negative externality results from the refining of oil, the cost of production as seen by the oil refinery:
a. does not include the external cost
b. includes the external cost.
c. does not include the external benefit.
d. includes the external benefit.
a
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Gross federal debt held by the public is equal to
A) total gross federal debt. B) the federal debt held by the Fed minus the federal debt held by other countries. C) the federal debt held by other countries plus the federal debt held by private investors. D) the federal debt held by the Fed plus the federal debt held by private investors.
If a firm experiences diminishing marginal productivity of labor, the marginal product
a. increases as total product increases. b. decreases as total product increases. c. increases as total product decreases. d. decreases as total product decreases.
Draw the demand curve for a good whose price elasticity of demand is equal to zero. Be sure to label both axes. Explain what the graph represents.
What will be an ideal response?
Are federal budget deficits related to trade deficits?
A. Yes. If U.S. consumers buy too many imported goods they don't have money to save and a budget deficit results. B. Yes, but only if the quality of U.S. goods and services is deteriorating. C. Yes. As deficit spending goes up, it is likely government borrowing will, too. Then foreign residents who lend funds to the U.S. government have less to spend on our goods, so U.S. exports will fall. D. No. The budget deficit is entirely a domestic matter while the trade deficit only affects U.S. citizens who travel abroad.