The net increase to total surplus when a negative externality is corrected or eliminated is due to:
A. the transfer of surplus from consumer or producer to those affected by the externality.
B. the transfer of surplus from those affected by the externality to the consumer.
C. the reduced number of transactions in the market.
D. None of these statements is true.
Answer: C
You might also like to view...
Which of the following would be a debit in the U.S. capital account?
A. A U.S. publisher purchases a copyright from a French author for $3,000. B. A Chinese importer buys $10,000 of cigarettes from a U.S. manufacturer. C. Egypt forgives $100,000 of debt owed by the U.S. government. D. A U.S. corporation sells $50,000 of stock to investors in Japan.
In a committee, any outcome preferred by any member can win
a. True b. False
Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future. b. place downward pressure on healthcare prices. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
In the monetarist version of the AD-AS framework, starting from long-run equilibrium, a decrease in velocity produces
A) no change in Real GDP in the short run or the long run. B) a rise in Real GDP in both the short run and the long run. C) a fall in Real GDP in both the short run and the long run. D) a fall in Real GDP in the short run, but not in the long run. E) no change in Real GDP in the short run, but a rise in the long run.