If external costs are included and added to a firm's private costs, then
A. the supply curve will shift to the left.
B. the demand curve will shift to the left.
C. the demand curve will shift to the right.
D. the supply curve will shift to the right.
Answer: A
You might also like to view...
With an upward sloping LM curve, a falling interest rate __________ money demand, so that an expansionary monetary policy is __________ than in the case of a vertical LM curve
A) raises; stronger B) raises; weaker C) has no effect on; stronger D) has no effect on; weaker
A decrease in U.S. real interest rates causes the dollar to _________________, which tends to __________________ U.S. Real GDP
A) appreciate; raise B) appreciate; lower C) depreciate; raise D) depreciate; lower
According to the ____ school of thought, it is in people's self-interest to acquire, process, and respond to information which affects their economic well-being and to not repeat previous errors in action.
A. supply-side B. economic behaviorists C. Keynesian D. rational expectations
The likelihood of a cartel being successful is greater when:
A. firms are producing a differentiated, rather than a homogeneous, product. B. cost and demand curves of various participants are very similar. C. the number of firms involved is relatively large. D. the economy is in the recession phase of the business cycle.