Goods with many close substitutes tend to have
a. more elastic demands.
b. less elastic demands.
c. price elasticities of demand that are unit elastic.
d. income elasticities of demand that are negative.
a
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The marginal social cost of a chemical is $100 per ton and its marginal private cost is $85 per ton. What is the marginal external cost of the chemical?
What will be an ideal response?
Suppose the central bank of Blugonia has the responsibility of controlling the supply of money in the economy. This responsibility of the central bank is considered a part of _____
a. budget balancing b. decentralized banking c. monetary policy d. trade policy
On the "demand side" of a market, consumers indicate what they are willing to buy, in what quantity and at what price.
Answer the following statement true (T) or false (F)
When marginal private cost is equal to marginal social cost,
A. the activity in question generates no positive externality. B. the activity in question generates no negative externality. C. all positive externalities have been internalized. D. all negative externalities have been internalized. E. b or d