If negative externalities are created in the production of a good, then society will:
a. produce too much of the good since the marginal private cost to firms is less than the marginal social cost.
b. produce too little of the good since the marginal private cost to firms is less than the marginal social cost.
c. produce too much of the good since the marginal private cost to firms is greater than the marginal social cost.
d. produce too little of the good since the marginal private cost to firms is greater than the marginal social cost.
a
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Jose and Julia were discussing the necessary components to achieve economic growth. Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system. Julia reminded Jose that another key component is
A) property rights. B) freedom of speech. C) a guaranteed high rate of return on savings. D) freedom of religion. E) democracy.
The graph shown best represents:
A. a binding price floor. B. a missing market. C. a binding price ceiling. D. a market for an inferior good.
Which of the following represents a change in the quantity demanded?
A. People buy more computers because of a surge in the economy. B. People buy more computers due to a change in income. C. People buy more computers as prices fall. D. People buy more computers due to a change in tastes.
Which of the following character types best describes the definition above?
a. Round character b. Flat character c. Static character d. Dynamic character.