Provide an example of each type of externality that is different from the ones described above
What will be an ideal response?
Dumping dangerous chemicals in river while producing paper is an example of a negative production externality. Baking bread and the resulting odor enjoyed by by-passers is an example of a positive production externality. Littering while hiking is an example of a negative consumption externality. Planting a beautiful bamboo garden that by-passers enjoy is an example of a positive consumption externality.
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In the long run, all factors of production are
A) variable. B) fixed. C) materials. D) rented.
If a firm cannot earn profits in the short run, it will shut down
Indicate whether the statement is true or false
As a person's wealth increases we would expect the demand for money to:
A. decrease. B. not change; money demand does not vary with wealth, only with income. C. increase dollar for dollar with wealth. D. increase but at a rate less than dollar for dollar.
A shift of the supply curve for farm products to the right in a price inelastic region of the demand curve for farm products
A) reduces price and total revenue. B) increases price and reduces total revenue. C) reduces price and increases total revenue. D) increases prices and total revenue.