A negative externality is a situation in which
A) there is a spillover of benefits.
B) a cost associated with an economic activity is borne by a third party.
C) a firm is paying in excess of the total costs of producing a good.
D) none of the above.
Answer: B
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Use the following graph for a monopolistically competitive firm to answer the next question.
Point b indicates
A. the price-output combination that yields maximum profits. B. the lowest possible cost of the firm's product. C. a situation where the firm is earning economic profits. D. a point that cannot be the long-run equilibrium point.
Labor unions will raise the quantity of labor demanded
a. True b. False Indicate whether the statement is true or false
Which of the following is not a policy to combat poverty?
A. TANF B. Supplemental Nutrition Assistance Program C. Earned income tax credit D. Mortgage interest deductions
"A market is said to be perfectly competitive when consumers can tell that some products are of better quality than others." Do you agree or disagree? Why?
What will be an ideal response?