If it costs $2,000 to pick up the litter along a highway, then the cost of the externality is:
a. $0.
b. more than $0, but less than $2,000.
c. $2,000.
d. more than $2,000, but finite.
e. infinite.
c
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When institutions do not protect private property rights, do not uphold contracts, interfere with the working of markets and instead erect significant barriers into businesses and occupations, they are referred to as:
A) transitive economic institutions. B) extractive economic institutions. C) inclusive economic institutions. D) exclusive economic institutions.
It is possible that if a monopoly is broken up, the cost of production for that product could increase
a. True b. False Indicate whether the statement is true or false
Movement along the aggregate expenditure line is caused by a change in the level of income.
a. true b. false
Figure 12.8 depicts an advertising game between two stores. Which of the following possible outcomes is a Nash equilibrium of the game?
A. Neither store advertises. B. Only Store A advertises. C. Only Store B advertises. D. Both Store A and Store B advertise.