When a person does not have to pay the full costs for using a scarce resource, then
A) the use of the resource is not affected since society pays for the resource.
B) more of the resource will be used.
C) the internal costs of using the resource are too high.
D) the social costs of the resource are less than they would be if the "correct" amount of the resource were being used.
B
You might also like to view...
An individual who desires the most liquid asset possible will hold
A) currency. B) a savings account. C) checkable deposits at a bank. D) U.S. government bonds.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserves account in the context of the Three-Sector-Model? a. The GDP Price Index rises and reserves account becomes more negative (or less positive)
b. The GDP Price Index falls and reserves account remains the same. c. The GDP Price Index and reserves account remain the same. d. The GDP Price Index rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The "rule of reason" was formulated in the
A. Standard Oil case of 1911. B. U.S. Steel case of 1920. C. ALCOA case of 1945. D. XEROX case of 1973
Refer to the above table. At an output of 4 units, average variable costs are
A. $44. B. $38.50. C. $16. D. $22.