Social cost is the sum of private cost and
a. price
b. quantity
c. supply
d. demand
e. external cost
E
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Tax cuts aimed at businesses can stimulate
A) social spending. B) net exports. C) private consumption. D) investment spending.
Suppose that the local health board discovers some unsanitary conditions at your favorite sushi restaurant. An economist would likely have what to say about this situation?
A) "All unsanitary conditions at this restaurant must be eliminated." B) "The restaurant owner obviously cares more about profits than about his customers." C) "No one should eat at this restaurant due to the potential health hazard." D) "Eliminating all of the unsanitary conditions might cost more than the value of the benefits that would be gained."
Answer the following statements true (T) or false (F)
1. The basic function of any economic system is to provide the framework for allocating scarce resources in a way that adequately satisfies unlimited wants. 2. Economics can be defined as the study of choices. 3. The United States has an abundance of resources and thus does not face the problem of scarcity. 4. The standard of living in most countries in the past has risen primarily as a result of a more skilled workforce and better machinery and equipment.
If the cross-price elasticity of two goods is 0.25, then we know that these goods are:
A. substitutes because their cross-price elasticity is greater than zero. B. complements because their cross-price elasticity is less than 1. C. substitutes because their cross-price elasticity is less than 1. D. complements because their cross-price elasticity is greater than zero.