Social costs are
A. the costs associated with reaching and enforcing agreements.
B. private costs plus any external costs.
C. costs incurred when common property is used.
D. the costs of the externality only.
Answer: B
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Which of the following four firms would most likely NOT be part of a perfectly competitive market?
A) Mark sells his tomatoes at the local farmers market. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Village Pizza sells pizza in a college town. D) Space Age Fuel is a gas station in Bend, Oregon.
If unemployment and inflation always move in the same direction, then we can infer that business fluctuations are
a. from the demand side. b. from the supply side. c. from both the demand and supply side. d. purely random events.
If the price of inputs rises and consumer expectations about future economic activity worsens:
a. Aggregate demand and aggregate supply rise. b. Aggregate demand and aggregate supply fall. c. Neither aggregate demand nor aggregate supply change. d. Aggregate demand rises, and aggregate supply falls. e. None of the above.
A market is called monopolistically competitive if each firm has the same product but consumers can choose to purchase the product from any firm.
Answer the following statement true (T) or false (F)