Which of the following is an example of a positive externality?
a. A firm emits pollution into the air, harming members of society
b. An auto body shop makes a lot of noise, reducing the property values of nearby homes.
c. A coastal dairy farmer's undeveloped land offers unimpeded views of the ocean for a nearby neighborhood.
d. You go to a store and pay $0.65 for a candy bar that you then eat.
c
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A tax system with little deadweight loss and a small administrative burden would be described as
a. equitable. b. communistic. c. capitalistic. d. efficient.
Depression and lost self-esteem are examples of the ________ costs of unemployment, while the lost income and tax revenue are examples of the ________ costs of unemployment.
A. psychological; economic B. economic; psychological C. economic; social D. social; psychological
If a firm's demand for labor is elastic, a union-negotiated wage increase will:
A. necessarily be inflationary. B. cause the firm's total payroll to increase. C. cause the firm's total payroll to decline. D. cause a shortage of labor.
A demand curve is downward-sloping because as the price of a good falls, demanders will substitute some other good for that good whose price has fallen.
Answer the following statement true (T) or false (F)