If a production process creates positive externalities, a competitive market produces too few positive externalities because the producer
A) does not pay all the costs of the externalities.
B) does not receive compensation for the externalities.
C) Both A and B.
D) None of the above.
B
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How much is the percentage of income received by the lowest quintile on line R?
Which of the following is correct regarding road tolls as a way to reduce traffic?
a. They can vary based on the amount of traffic that is present. b. They reduce drivers' explicit cost of driving but increase drivers' implicit cost. c. Some drivers can be made better off, but some drivers will inevitably made worse off. d. They are the solution to the free rider problem that occurs on roads.
For perfectly competitive firms,
A. total revenue equals price. B. marginal revenue equals price. C. marginal revenue equals total revenue. D. all of the above
Which of the following statements is true?
A. Economic models are sometimes good for explaining one set of events and poor for explaining other sets of events. B. A model that has correctly predicted events for the past several years will not be wrong in the future. C. Economic models are either right or they are wrong. D. An economic model that is not always true is not useful and should not be used.