The sum of internal and external costs is
A) externalities.
B) social costs.
C) internalities.
D) private costs.
Answer: B
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Determining the most socially desirable level of income equality or inequality
a. is done through markets, rather than by the government b. is done directly by firms c. involves normative economics d. involves evaluation of public goods e. involves evaluation of all externalities, both positive and negative
What is the annual rate of economic growth in Japan if real GDP at the beginning of the year is 11.9 trillion yen and real GDP at the end of the year is 11.1 trillion yen?
a. 0.65% b. -6.7% c. 1.9% d. 0.008% e. -6.25%
What happens as a variable input increases while other inputs are fixed?
a. Eventually the fixed inputs will increase at a rate equal to or below the variable increases. b. Fixed costs will rise and variable costs will fall as they are spread over larger output. c. The average variable cost will remain equivalent to or below the average fixed cost. d. At some point the increase will lose its effectiveness, and additions to output will decline.
In which of the following cases must price always fall?
A. Demand increases and supply increases. B. Demand decreases and supply decreases. C. Supply increases and demand remains constant. D. Demand decreases and supply increases. E. Both c and d