Goods that have spillover costs affect our collective well-being and therefore can be overproduced because
A. Most businesses are more concerned about profits than how the environment is affected.
B. The government has failed to establish rules for contracts.
C. The government is concerned about broad economic welfare.
D. The government has failed to enforce contract provisions.
Answer: A
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Equity issues in taxation are inherently positive in nature
a. True b. False
In the above figure, at output levels between 5 units and 13 units
A) the firm's accounting profits are negative. B) total revenue equals total costs. C) the firm's economic profits are positive. D) the firm is breaking even.
Which of the following is not a characteristic of a competitive market?
a. Buyers and sellers are price takers. b. Each firm sells a virtually identical product. c. Entry is limited. d. Each firm chooses an output level that maximizes profits.
In answering which of the following questions would you find it necessary to calculate a future value?
a. If Jill puts $5,000 today into a bank account that pays 3 percent interest, then how much will she have in the account after 2 years? b. Should ABC Corporation buy a factory today for $2 million, knowing that the factory will yield the corporation $3 million after 5 years? c. As the winner of a lottery, should Michael choose an immediate payment of $250,000 or should he choose annual payments of $30,000 for each of the next 10 years? d. You would find it necessary to calculate a future value in order to answer all of these questions.