Which of the following would result in a positive externality?
A) A local government sets a maximum price on gasoline.
B) Taco Bell adds 15 new items to its dollar menu.
C) Medical research results in a cure for Ebola.
D) A solar panel manufacturer raises its prices due to increased demand.
C
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When floods wiped out the banana crop in Central America, the equili-brium price of bananas ________ and the equilibrium quantity of bananas ________
A. rose; increased B. rose; decreased C. fell; increased D. fell; decreased
Refer to Figure 1.7. Which of the following points show unemployment of resources above the normal rate?
A. N. B. J. C. D. D. H.
The country of Wiknam has net capital outflow of $1,000 . government purchases of $5,000 and consumption of $20,000 . Which of the following is correct?
a. If its domestic investment is $1,000 . its GDP is $26,000. b. If its domestic investment is $2,000 . its GDP is $28,000. c. If its domestic investment is $5,000 . its GDP is $29,000. d. None of the above are correct.
The option writer is:
A. the seller of an option. B. the underlying asset of the option. C. the buyer of an option. D. the individual who obtains the rights.