The inclusion of external benefits in the decision making process determining equilibrium price and quantity leads to
A. higher priced items and increased quantity.
B. lower priced items and a decline in quantity.
C. lower priced items and increased quantity.
D. higher priced items and a decline in quantity.
Answer: C
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Refer to the figure above. What is the deadweight loss when the market is converted into a monopoly?
A) $0 B) $45 C) $90 D) $180
Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
A property tax is a
a. progressive tax assessed on property ownership b. flat rate tax assessed on physical assets such as land c. flat rate tax assessed on income received from property ownership d. flat rate tax assessed on the sale of property and other physical assets e. progressive tax assessed on the sale of property and other physical assets
As successive equal increases in a variable factor of production are added to fixed factors of production, there will be a point beyond which the extra product that can be attributed to each additional unit of the variable factor of production will decline. This is known as the law of
A. diminishing total product. B. decreasing product. C. diminishing marginal product. D. diminishing average product.