An externality is
A) a third-party benefit or cost that is associated with the production of a good.
B) when external forces such as war or flood affect the market.
C) government intervention in the markets.
D) transaction costs.
Answer: A
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The market demand curve for mangos is
A) upward sloping because rich people can afford more mangos than poor people can buy. B) the same as the demand curve of one buyer in a market with many buyers. C) the horizontal sum of the individual demand curves of all the buyers. D) the vertical sum of the individual demand curves of all the buyers. E) the horizontal average of the individual demand curves of all the buyers.
When Frank's income rises from $29,000 to $34,000 per year, he increases his purchases of tomatoes from 20 pounds to 28 pounds per year
What is Frank's income elasticity of demand for tomatoes? (Use the midpoint formula.) According to Frank, are tomatoes an inferior or normal good?
An example of a way employers can minimize moral hazard is to:
A. monitor employees' computer activity. B. videotape the workplace. C. offer bonuses for consistent productivity. D. All of these are ways to minimize moral hazard.
According to the textbook, the most important and enduring source of market power is:
A. government franchises. B. economies of scale. C. copyrights. D. patents.