A positive externality exists when
A. a person's or group's actions cause a benefit that is felt by others.
B. a person's or group's actions cause a cost that is felt by others.
C. market output is less than socially optimal output.
D. a and c
E. b and c
Answer: D
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You would be more willing to buy AT&T bonds (holding everything else constant) if
A) the brokerage commissions on bond sales become cheaper. B) interest rates are expected to rise. C) your wealth has decreased. D) you expect diamonds to appreciate in value.
A an example of a game in which a leader moves first, and then the other rivals follow is a ________ game
A) Stackelberg model B) Cournot model C) finite move D) tit-for-tat
One of the applications of game theory is a mathematical analysis of: a. competitive markets
b. competitive sports. c. the probability of various outcomes. d. interdependent decision making.
Which of the following is a determinant of supply?
A. Number of buyers. B. Consumers' income. C. Consumer tastes or preferences. D. The prices of the factors of production.