An external benefit is a benefit from an activity that falls on a third party who is not a party to the activity
a. True
b. False
A
You might also like to view...
An closest example of a risk-free security is
a. General Motors bonds b. AT&T commercial paper c. U.S. Government Treasury bills d. San Francisco municipal bonds e. an I.O.U. that your cousin promises to pay you $100 in 3 months
A firm in a price-taker market:
a. must take the price that is determined in the market. b. must reduce its price if it wants to sell a larger quantity. c. must be large relative to the total market. d. can exert a major influence on the market price.
The income elasticity of demand
A. must lie between -1 and +1. B. is positive only. C. can be positive, negative, or zero. D. is negative only.
If planned investment is ________ to changes in the interest rate, the planned investment schedule is horizontal.
A. positively related B. perfectly unresponsive C. perfectly responsive D. negatively related