Suppose that one firm produces a product that results in negative external costs to society. This information suggests that

A) resources are under-allocated to the firm.
B) the equilibrium market price of the product includes the external costs borne by society.
C) resources are over-allocated to the firm.
D) at the market price, quantity demanded is less than quantity supplied.


C

Economics

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Economics

The Heckscher-Ohlin model predicts all of the following EXCEPT

A) the volume of trade. B) which country will export which product. C) which factor of production within each country will gain from trade. D) that relative wages will tend to become equal in both trading countries. E) that trade increases a country's overall welfare.

Economics

According to the law of demand, there is an inverse relationship between price and quantity demanded. That is, the demand curve for goods and services slopes downward. Why?

A. when the price of a good increases, consumers' purchasing power falls, and they cannot buy as much of the good as they did prior to the price change B. when price increases, quantity demanded increases C. when the price of a good increases, consumers purchases complementary goods that are now relatively less expensive D. A and C only

Economics

What is dollarization?

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Economics