Externalities can be positive because
A. marginal damages do not last over time.
B. utility can be impacted positively as well as negatively.
C. there is no concept for marginal benefit.
D. positive externalities are subsidies.
B. utility can be impacted positively as well as negatively.
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From 8 to 11 p.m., Sam can either attend a basketball game, a hockey match or the symphony. Suppose that Sam decides to attend the hockey match and thinks to herself that if she did not go to the match she would go to the symphony
Then the opportunity cost of attending the hockey match is A) going to the symphony and the basketball game. B) going to the symphony. C) going to the basketball game. D) three hours of time.
The study of the problems due to asymmetric information was begun when economists analyzed which type of market?
A) the market for automobiles B) farmers' markets C) the market for insurance D) the market for citrus fruit
Predicting the impact of institutional change on the effectiveness of monetary policy is best done with a
A) structural model. B) reduced-form model. C) black-box model. D) scientific model.
If a country has absolute advantage in the production of all goods, then it will have no incentive to trade
Indicate whether the statement is true or false