Which of the following is the main reason for externalities?
A) The full cost of a transaction is not borne by the buyer/seller of the product.
B) Police enforcement of scalping is not uniformly enforced.
C) the lack of organized exchanges for all goods and services
D) The production of public goods uses up scarce resources.
Answer: A
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If a new seller enters a market to compete with an existing natural monopoly, it will:
A) decrease the costs for both the sellers. B) increase the costs of production for both the sellers. C) increase the production costs for the existing seller, and a decrease in the costs for the new entrant. D) decrease the production costs for the existing seller, and an increase in the costs for the new entrant.
Which of the following would lead to a rightward shift of the money demand curve?
a. Expectations that the interest rate will fall b. New substitutes for money become popular c. The use of electronic money increases d. Substitutes for money become less popular e. The use of credit cards increases
The scenario in which the trade deficit slowly shrinks over time is called the
a. soft-landing scenario. b. hard-landing scenario. c. fair-trade scenario. d. free-trade scenario. e. protectionist scenario.
Which of the following acts prohibits directors of one company from sitting on the board of a competitor?
a. Sherman Act b. Federal Trade Commission Act c. Robinson-Patman Act d. Clayton Act