Which of the following statements is NOT true of external benefits?
A. External benefits lead to an underallocation of resources to the production of the good that has the external benefit.
B. External benefits are a good thing for the allocation of resources because people are getting something at no cost.
C. External benefits lead to too few of the goods that have the external benefit being produced.
D. External benefits lead to a price in the market that is too high.
Answer: B
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The tax base of the value added tax and a turnover tax are the same
a. True b. False
Sunil has decided not to purchase another can of Stosh because his friends laughed at him the last time he purchased some. Stosh is no longer a popular item. Sunil's action is known as
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If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. the consumer surplus is greater than in a competitive equilibrium. B. the price is set inefficiently high. C. the price is set below the competitive equilibrium price. D. the market is efficient.
Which of the following individuals would be considered unemployed?
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