In order to correct the problems associated with external costs,
A) the signals given to the economy must change so that decision-makers will take into account all the costs of their actions.
B) the government must take over production of industries that are responsible for most of the pollution.
C) standards must be established that make it illegal to pollute.
D) the prices of all goods must be raised so people will consume less of the world's resources.
Answer: A
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The case on textbook publishers shows that
A) if imports are allowed, price discrimination is difficult or impossible. B) if imports are allowed, price discrimination is possible. C) publishers have a difficult time identifying the groups involved. D) publishers should not migrate to electronic textbooks.
Credit cards are a widely accepted form of money
Indicate whether the statement is true or false
The production possibilities curve shows all possible combinations of
A) two goods that are desired by society. B) two goods that can be efficiently produced with a given set of resources. C) two goods that can be purchased given the prices of the goods. D) two goods that two countries can trade with each other.
If the long-run supply curve is upward sloping, we know that
A) entrepreneurs are earning higher profits as output expands. B) some input prices are increasing as the industry expands. C) firms are getting larger as the industry contracts. D) the law of diminishing marginal returns has set in.