A positive externality is the positive effect that:
A. an action has on others that is not taken into account by the decision maker.
B. external forces have on society as a whole.
C. external forces have on a decision maker.
D. an action has on the decision maker.
Answer: A
You might also like to view...
Under a fixed exchange rate regime, if a country's central bank runs out of international reserves, it cannot keep its currency from
A) depreciating. B) appreciating. C) deflating. D) inflating.
One difference between moral hazard and adverse selection is
a. Moral hazard has to do with unobservable characteristics of individuals b. Adverse selection has to do with unobservable actions of individuals c. Adverse selection occurs when individuals least appropriate for positions are most likely to apply for them d. Adverse selection is when you choose the wrong answer on a test
Which of the following combinations of changes in government spending and taxes in necessarily expansionary?
A) Increase/Increase B) Increase/Decrease C) Decrease/No change D) Decrease/Increase E) Decrease/Decrease
Should the United States pass a minimum wage that assures all workers earn a wage above the poverty level?
Defend your position using economic principles.