For a negative externality, the _________ than the costs imposed on society as a whole.
Fill in the blank(s) with the appropriate word(s)
Answer: Private costs of an action are less
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A common property is
a. both nonrivalrous and nonexcludable. b. nonrivalrous, but not nonexcludable. c. nonexcludable, but not nonrivalrous. d. either nonrivalrous or nonexcludable, but not both.
Excessive fishing occurs because
a. each individual fisherman has little incentive to maintain the species for the next year. b. fishermen rely on government managers to worry about fish populations. c. fishermen are unionized, so they are not concerned with externalities. d. fishermen have other marketable skills and do not fear exploitation of fish reserves.
The problem arises with principals and agents when the goals of the agent are incompatible with those of the principal and when the agent cannot pursue hidden actions
Indicate whether the statement is true or false
Assume an economy that is producing only one product. Output and price data for a three-year period are as follows. Answer the question on the basis of these data. year units of output price per unit 1 20 4 2 25 4 3 30 6 Refer to the above data. The nominal GDP for year 3 is:
a) 125 percent higher than the nominal GDP for year 1. b) 50 percent higher than the nominal GDP for year 1. c) $120. d) $30.