An economic activity in which benefits or costs affect third parties is called
A) a public good.
B) a third-party good.
C) the exclusion principle.
D) an externality.
D
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The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price.
Answer the following statement true (T) or false (F)
Which of the following is NOT true according to Say's law?
A) Producing goods and services generates the means and the willingness to purchase other goods and services. B) Desired expenditures will always be higher than actual expenditures. C) Supply creates its own demand. D) No overproduction is possible in a market economy in the long run.
If unrealized capital gains are not taxed, then individuals _____
a. have no incentive to own assets that are going to appreciate in value b. have little incentive to own assets that are going to appreciate in value c. have strong incentive to own assets that are going to appreciate in value d. have incentives to not sell assets that have appreciated in value
If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B
a. True b. False Indicate whether the statement is true or false