A positive externality exists when ______.
a. a situation occurs where an informed party benefits in an exchange by taking advantage of knowing more than the other party
b. the available information is initially distributed in favor of one party relative to another in an exchange
c. costs spill over to an outside party who is not involved in producing or consuming the good
d. benefits spill over to an outside party who is not involved in producing or consuming the good
d. benefits spill over to an outside party who is not involved in producing or consuming the good
You might also like to view...
What has happened to the free trade agenda in the last few years, and in particular to the fate of the Doha Round of trade negotiations?
What will be an ideal response?
The monetary approach makes the general prediction that
A) the exchange rate, which is the relative price of American and European money, is fully determined in the long run by the relative supplies of those monies. B) the exchange rate, which is the relative price of American and European money, is fully determined in the short run by the relative supplies of those monies and the relative demands for them. C) the exchange rate, which is the relative price of American and European money, is fully determined in the short run and long run by the relative supplies of those monies and the relative demands for them. D) the exchange rate, which is the relative price of American and European money, is fully determined in the long run by the relative supplies of those monies and the relative demands for them. E) the money supply in the U.S. will adjust to European monetary equilibrium.
The above figure shows the demand and cost curves facing a monopoly. The monopoly maximizes profit by setting price equal to
A) $100. B) $200. C) $300. D) $400.
The problem of overfishing in waters that are commonly owned can be solved by
A) the use of the Coase Theorem. B) establishing property rights for fishing in the waters. C) subsidizing fishing. D) allowing the market to ration fish.