Why do negative externalities like pollution result in inefficiency?
A. Because producers artificially restrict their supply.
B. Because producers ignore the external costs they impose on third-parties.
C. Because producers manufacture more goods than people can afford to buy.
D. Because producers will receive an unequal distribution of profits.
Answer: B
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Linder's hypothesis provides an explanation for
A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) All of the above.
Based on the table "Real and Nominal GDP," if year one is the base year, then the real GDP in year two, is ________
A) 5000 B) 5250 C) 5900 D) 6175 E) none of the above
Which of the following is true?
a. More than half of medical bills are paid for directly by consumers. b. Healthcare insurance provided by one's employer is counted as personal income. c. State mandated coverage of medical procedures like in-vitro fertilization, drug rehabilitation, and acupuncture, make health insurance more affordable. d. Regulations prevent consumers from purchasing a health insurance plan offered in another state.
As the period for firms to expand output is lengthened, the elasticity of the market supply curve will
a. approach zero. b. increase. c. decrease. d. remain the same since time does not affect the elasticity of market supply.