Which of the following is true concerning negative externalities?
A. Perfect competition is better than monopoly from the viewpoint of society even in the presence of negative externalities.
B. With negative externalities, a monopoly will always produce an output level less than is socially efficient.
C. Firms tend to produce more than the efficient level of output.
D. Society gains because firms do not pay the external costs of production.
Answer: C
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In a market with 1,000 identical firms, the short-run market supply is the
a. marginal cost curve above average variable cost for a typical firm in the market. b. quantity supplied by the typical firm in the market at each price. c. sum of the prices charged by each of the 1,000 individual firms at each quantity. d. sum of the quantities supplied by each of the 1,000 individual firms at each price.
The outcome of the Civil War in the United States was that:
a. the Confederates were allowed to keep their currency. b. the value of the Confederate dollar increased at the end of the war. c. the Confederate dollar became worthless. d. the North's currency declined in value.
Suppose that at the current price producers of CDs offer 5 million CDs for sale but consumers want to buy 6 million. When the market coordinates the demand and supply for CDs, the price of CDs will:
A. rise. B. fall. C. stay the same. D. be fixed by the government.
Increases in household and business spending are a demand factor in economic growth.
a. true b. false