We call costs that fall directly on an economic decision maker:
A. social costs.
B. external costs.
C. network costs.
D. private costs.
Answer: D
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As the quantity of labor increases, the marginal product of capital
A) is constant. B) increases. C) decreases. D) may either increase or decrease.
The difference in wage rates needed to make two jobs equally attractive to workers is known as a(n)
a. equilibrium wage rate b. competitive wage c. equalizing wage d. compensating wage differential e. efficient wage
On holiday weekends thousands of people picnic in state parks. Some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. An overcrowded picnic area is an example of
a. a private good. b. a club good. c. a Tragedy of the Commons. d. public good.
Contractionary monetary policy is most likely to:
A. decreases interest rates, raises investment, and increases income. B. increases interest rates, reduces investment, and decreases income. C. increases interest rates, raises investment, and increases income. D. decreases interest rates, reduces investment, and decreases income.