When an externality is present in a market, and correcting it increases the efficiency of the market, we can conclude it is a:
A. either a negative or a positive externality.
B. network externality.
C. negative externality.
D. positive externality.
Answer: A
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Initially, the economy is at point G in Figure 10-4 above. A change in per capita savings ________ will after complete adjustment ________
A) point X to point E; lower the growth rate of output per capita B) point X to point E; raise the growth rate of output per capita C) point E to point X; raise output and saving but not the growth rate of output per capita D) point E to point X; raise output and saving and the growth rate of output per capita
In both monopolistic competition and non-price-discriminating monopoly,
a. the marginal revenue curve lies above the average revenue curve b. the marginal revenue curve lies above the demand curve c. the marginal revenue curve lies below the demand curve d. marginal revenue is equal to average revenue e. marginal revenue is equal to price
Under majority rule, the order in which items are voted on is
a. unimportant, and this is a lesson of the Condorcet paradox. b. unimportant, and this is a lesson of Arrow's impossibility theorem. c. important, and this is a lesson of the Condorcet paradox. d. important, and this is a lesson of Arrow's impossibility theorem.
Which of the following shifts the short-run aggregate supply curve to the right?
a. an increase in the money supply b. an increase in the price level c. a decrease in the expected price level d. All of the above are correct.