Positive and negative externalities can lead to market failure
Indicate whether the statement is true or false
True
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If a good has an external cost, the
A) unregulated competitive market outcome is efficient. B) marginal private cost reflects the external cost. C) unregulated competitive market outcome is inefficient. D) marginal social benefit is equal to the marginal social cost when the market is in equilibrium. E) external benefit must equal the external cost.
A competitive firm will maximize profit by hiring the amount of an input at which
A. the last unit of the input hired adds the same amount to total output as to total cost. B. the additional output from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. C. the additional revenue from the last unit of the input hired exceeds the additional cost of the last unit by the largest amount. D. the last unit of the input hired adds the same amount to total revenue as to total cost.
In making accurate comparisons of GDP across countries, it is important to take differences in ________ into account.
A. population size B. the average age of the population C. family size D. All of these
Suppose you are offered a new smartphone in exchange for thirty hours of your work in your friend's garden. This is an example of
A) money as a standard of deferred payment. B) barter. C) money as a medium of exchange. D) money as a store of value.