Social costs of a good are equal to
A) external costs minus private costs.
B) private costs minus external costs.
C) private costs plus external costs.
D) external costs divided by the private costs.
Answer: C
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If it is said that a currency is overvalued against the dollar, it is meant that:
A) the dollar is worth more of that currency than it would have been under a fixed exchange rate regime. B) the dollar is worth less of that currency than it would have been under a fixed exchange rate regime. C) the dollar is worth less of that currency than it would have been under a flexible exchange rate regime. D) the dollar is worth less of that currency than it would have been under a managed exchange rate regime.
Changes in exchange rates are due to
A) real events only. B) nominal events only. C) both real and nominal events. D) None of the above.
Which of the following will most likely occur during the contractionary phase of a business cycle?
a. Real GDP rises, and the unemployment rate falls. b. Real GDP declines, and the rate of inflation rises. c. The sales of most businesses decline, and the unemployment rate rises. d. Inflation rises, and employment/population ratio falls.
Law of supply
What will be an ideal response?