Externalities occur when there is a lack of
A) free-riding.
B) well-defined property rights.
C) market participants.
D) government regulation.
B
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Redland produced 10 million tonnes of wheat in a certain year using a given stock of capital and efficiency units of labor
It was able to increase production to 15 million tonnes within two years without any increase in its capital stock or the number of efficiency units of labor. Suppose wheat is the only good produced in Redland. What is likely to be the reason behind the increase in production? Explain with a suitable diagram.
Your authors say economists tend to
A) think outside the box. B) think outside the bun. C) think outside the mind. D) think outside the theory. E) think outside the facts.
The above (incomplete) table provides information about the relationships between output and various cost measures. The total fixed cost (TFC) for the firm is
A) zero. B) $45. C) $10. D) None of the above answers is correct.
Which of the following is an economic explanation for the "beauty premium"?
a. Employers pay very attractive women less than average-looking women because they believe them to be less intelligent. b. Employers pay above-average-looking men more than above-average-looking women. c. Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women. d. Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.