Externalities can be either positive or negative.
Answer the following statement true (T) or false (F)
True
Positive externalities have positive effects on third parties, and negative externalities have negative effects.
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Which of the following goods will least likely suffer a decline in demand during a recession?
A. Dinner at a nice restaurant B. iPods C. Toothpaste D. Plasma screen and LCD TVs
For a perfectly competitive firm, when MC is less than MR
A) the producer has an incentive to expand output. B) the producer has an incentive to decrease output. C) the producer has no incentive to change production. D) economic profits must be positive.
When making the decision to invest, the evaluation of the expected flow of future productive services that the investment project being considered will yield is an important consideration. This statement is accurate for
A. firms and households, but not for governments considering an investment project. B. firms, households, and governments. C. firms and governments, but not for households considering an investment project. D. firms, but not for governments and households considering an investment project.
What is the central bank of the United States?
A) There is no central bank in the United States. B) The Department of Treasury C) The Federal Reserve System D) The U.S. Mint E) Each state has its own central bank, which, when all taken together, constitute the central bank of the United States.