Externalities arise when:
a. the benefits of a transaction between producers and consumers are enjoyed by only the consumers.
b. the benefits of a transaction between producers and consumers are enjoyed by only the producers.
c. a transaction negatively impacts people who are not directly involved in the transaction
d. a transaction occurs without the government's approval.
c
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Nominal gross domestic product is based on:
a. the existing prices at which final goods and services are actually sold. b. prices of final goods and services adjusted for inflation. c. prices at which intermediate goods are sold. d. none of these.
Government subsidized scholarships are an example of a government policy aimed at correcting negative externalities associated with education
a. True b. False Indicate whether the statement is true or false
According to the law of demand:
A. Price and quantity demanded are inversely related. B. Price is constant along a particular demand curve. C. The demand curve will shift rightward as price increases. D. Businesses will produce more as price increases.
Automatic stabilizers are designed to
A. simplify the tax system. B. promote global trade. C. stabilize the bi-partisan budget process. D. moderate changes in disposable income.