Use the following diagram of the market for product X to answer the question below.
Curve St embodies all costs (including externalities) and Dt embodies all benefits (including externalities) associated with the production and consumption of X. Assuming the market equilibrium output is Q1, we can conclude that the existence of external
A. costs has resulted in an overallocation of resources to X.
B. benefits has resulted in an underallocation of resources to X.
C. costs has resulted in an underallocation of resources to X.
D. benefits has resulted in an overallocation of resources to X.
Answer: B
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Some countries have economies that are extremely market-oriented, while other countries have ___________ economies.
a. private b. textile c. command d. internal
European banks began with which of the following?
a. Churches were the first bankers, lending out cash to help the poor learn a craft. b. Monarchs were the first bankers, lending out cash to help the poor learn a craft. c. Goldsmiths were the first bankers, and the paper receipts they issued for gold held on deposit became valued as money. d. Fishermen were the first bankers, and the paper receipts they issued for fish they stored in the holds of their ships became valued as money.
The exercise of union power will tend to
A. Cause product prices to be lower in unionized industries. B. Cause profits to be higher in unionized industries. C. Increase the supply of labor available to nonunion industries. D. Reduce the supply of labor available to nonunion industries.
Dividing the dollar value of total sales by the cost of making those sales is one way that businesses often measure their
A. accountability. B. profitability. C. liability. D. productivity.