If a good has zero external costs, then
A) marginal social cost equal marginal private cost.
B) marginal social cost is greater than marginal private cost.
C) marginal social cost is less than marginal private cost.
D) we need more information to determine the relationship between private and social costs.
A
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Why would an economist claim that "oil comes out of our minds"?
A) She wants to sound silly. B) She wants to tell lies. C) She wants to remind us that the recognition of useful resources is a product of our mental abilities. D) She wants to sound like a really big and important theorist and could not care less about the facts of the real world.
Substitutes
What will be an ideal response?
A vertical merger occurs when:
A. the products of the merging firms were not related in any manner before the merger. B. the merging partners were competitors before the merger. C. one firm is a domestic firm, and the other is a foreign company. D. the firms stood in a buyer-seller relationship before the merger.
Assume that an economy experiences both positive population growth and technological progress. In this economy, which of the following is constant when balanced growth is achieved?
A) I B) S C) Y/N D) all of the above E) none of the above