When production of a good generates external costs, the
a. demand curve for the good will overstate the true social benefits from consumption of the good.
b. demand curve for the good will understate the true social benefits from consumption of the good.
c. supply curve for the good will overstate the true social cost of producing the good.
d. supply curve for the good will understate the true social cost of producing the good.
D
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Dividends are the interest rates paid on stocks
Indicate whether the statement is true or false
Describe some of the advantages and disadvantages of each of the following schools: linear stages, structural change, dependence and neoclassical
What will be an ideal response?
Consumers demand different features from cough medications taken for daytime use versus nighttime use. Drug companies conveniently package both medications together. This strategy is designed to
a. Allow consumers to buy the two together b. Stop consumers from buying each medicine separately c. Make the consumers more homogenous so that maximum consumer surplus can be extracted with a single price d. None of the above
The economic theory of labor markets leads to the conclusion that professional athletes who are paid tens of thousands of dollars per appearance must be paid more than their marginal revenue product
a. True b. False Indicate whether the statement is true or false