When production generates a negative externality, the true cost of production is the
A) private cost of production.
B) public cost of production.
C) social cost of production.
D) average cost of production.
Answer: C
You might also like to view...
An automobile manufacturing plant is likely to have a ______________ price elasticity of supply than a bread bakery due to _________________.
A. more elastic; a more flexible production process B. more elastic; greater availability of inputs C. less elastic; a less flexible production process D. more elastic; lower availability of inputs
When banks hold excess reserves the:
A. money multiplier overestimates how much money will be created in the economy. B. money multiplier underestimates how much money will be created in the economy. C. reserve ratio is not fully functioning, and should be raised. D. reserve ratio is not fully functioning, and should be lowered.
A decrease in the price of a good will a. increase demand
b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded.
The process of focusing on only the most important factors to explain a phenomenon is called
a. abstraction. b. marginal analysis. c. rational choice. d. controlled experimentation. e. the trade-off between efficiency and equality.