In the event of a detrimental externality that affects the public interest, government action is the only solution.
Answer the following statement true (T) or false (F)
False
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The CPI is biased because it
A) takes into account the changes in product quality. B) takes into account the changes in technology. C) does not always take into account the changes in product quality. D) accurately measures the cost of living but not the cost of producing. E) does not include services.
In an economy where firms in most industries are monopolistically competitive firms, individual firms in each industry would produce ________ products and have a ________ share of industry output
A) differentiated; large B) differentiated; small C) standardized; large D) standardized; small
Government's monopoly on force implies that government can both protect and violate rights
a. True b. False
In evaluating the required rate of return for equity financing of a capital project, the Beta value is
A) the expected rate of growth in a firm's profits. B) the expected future value of a firm's stock. C) the volatility in the rate of return on a firm's stock compared with the volatility in the rate of return on a market portfolio of stocks. D) None of the above