Social demand equals market demand plus externalities when there are positive external benefits.
Answer the following statement true (T) or false (F)
True
If a product yields external benefits, the social demand is greater than the market demand by the amount of the externality.
You might also like to view...
If your income and the price level both rise by 5 percent, and you think you now have more real income, you are suffering from
A) diminishing marginal expectations. B) leakages. C) injections. D) money illusion.
Which of the following would not be considered "capital" in economics? a. A delivery van used by Federal Express
b. $500 in currency. c. A microprocessor factory d. In economics, both (a) and (c) are considered capital.
A fundamental principle of economics is that every choice has a(n) _____________ cost.
a. established b. variable c. fixed d. opportunity
Which of the following is true in ski-towns such as Crested Butte, Colorado, and Whistler, British Columbia during the peak winter ski season as compared to the months of May and June?
a. Demand for motel rooms is higher. b. Demand for motel rooms is lower. c. The price of motel rooms will tend to be lower. d. There is a surplus of motel rooms.