An externality affecting demand can be measured graphically as the
A. Vertical distance between the market demand curve and the social demand curve.
B. Horizontal distance between the market demand curve and the social demand curve.
C. Height of the market demand curve at all points.
D. Height of the social demand curve at all points.
Answer: A
You might also like to view...
According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes
A) pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes. B) pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes. C) pay almost 69 percent of federal income taxes. D) use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.
A production possibilities curve shows the various combinations of two outputs that: a. consumers would like to consume. b. producers would like to produce
c. an economy can produce. d. an economy should produce.
Students in a class are assigned to groups to work on a project. A grade will be given for each project, and everyone in the group will receive that grade. For the members of a particular group, the grade is a
a. external benefit. b. public good. c. external cost. d. repeat purchase item.
The case for advertising includes the idea that
A. firms spend large sums of money to create meaningless differences among products. B. it adds to society's scarce resources. C. it creates wants that otherwise would not have existed. D. it can promote competition.