Which of the following is true if the production of a good gives rise to a positive externality?
A) The marginal social benefit from each level of output exceeds the consumers' willingness to pay.
B) The marginal private benefit from production exceeds the marginal social benefit.
C) The demand curve for the good shifts to the left in the presence of positive externalities.
D) The demand curve for the good shifts to the right in the presence of positive externalities.
A
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If High Tech Tablets brings a new personal tablet at a price of $200 for the first three months and then reduces the price of the tablet to $125, this is an example of ________.
A) first-degree price discrimination B) arbitrage C) market segmentation D) second-degree price discrimination
If a good is inferior and its price increases,
a. the income effect will be positive and the substitution effect will be positive. b. the income effect will be negative and the substitution effect will be negative. c. the income effect will be positive and the substitution effect will be negative. d. the income effect will be negative and the substitution effect will be positive.
The conviction that rich people should pay more taxes than poor people demonstrates the ______.
a. regressive tax approach b. flat tax approach c. ability-to-pay principle d. benefits-received principle
Which of the following is TRUE about comparative advantage?
A. Comparative advantage has nothing to do with trade among nations; it only is concerned with specialization within a firm. B. Comparative advantage explains trade within nations, but not among nations. C. Comparative advantage explains trade among nations, but not within nations. D. Comparative advantage explains trade within nations and among nations.