If the external costs of production are not taken into account, then production will
A) be less than socially desirable.
B) be more than socially desirable.
C) be the same since only prices are affected by externalities.
D) cease.
B
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Which of the following provides an important source for data on colonial wealth?
a. census records b. newspapers c. records of charitable contributions d. probate records
Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth $2,500 plans to sell it after this drop in interest rate, he would realize (approximately) a:
a. capital gain worth $99. b. capital loss worth $100. c. capital gain worth $100. d. capital loss worth $99.
In the United States, the largest expenditure component in GDP is
A) gross private domestic investment. B) government purchases of goods and services. C) consumption expenditures. D) net exports. E) none of the above
The degree of market power exercised by a firm is related to all but
A. The price elasticity of demand for the firm's product. B. The age of the industry. C. Its ability to influence the market price of its output. D. The number and proximity of competing firms.