John raises bees to pollinate his orchard. A couple of bees which escaped ended up pollinating his neighbor's orchard, so
A. John's neighbor has received an external cost of John's bee-keeping.
B. John's neighbor has received an internal cost of John's bee-keeping.
C. John's neighbor has received an external benefit of John's bee-keeping.
D. None of these is correct.
Answer: C
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Why is a small country more likely to gain from international trade than a large country?
a. Because autarkic relative prices in a small country are likely to be quite different from the world relative prices. b. Because a small country, unlike a large country, does not have the resources it needs to be self-sufficient. c. Because small countries tend to be specialized in their production, while large countries tend to be diversified. d. Because a small country is less likely to encounter decreasing returns to scale than is a large country.
Marginal analysis is useful in economics, but not in other areas of life.
Answer the following statement true (T) or false (F)
Which of the following properties is common to a partnership business?
a. Limited liability b. Centralized ownership and management c. Continuity and unlimited existence of the business d. Co-ownership of contributed assets
The slope of a perfectly elastic demand curve is equal to zero
a. True b. False Indicate whether the statement is true or false