Which of the following statements is not true?
a. If social cost and private cost are the same, any externality that exists will be positive
b. If external costs are not zero, externalities exist.
c. If somebody could buy the Pacific Ocean, fewer dolphins would be killed in fishing nets.
d. Every production process generates market failure.
e. When pesticides are used in producing food, the quantity of food produced is greater than the socially optimal level.
D
You might also like to view...
Refer to the scenario above. How much should he pay for the painting if he thinks that there is a 70% chance that the painting he is buying is original?
A) $50,000 B) $35,000 C) $70,000 D) $15,000
Consider an industry that is made up of six firms with the following market shares: Firm A - 50%, Firm B - 20%, Firms C and D - 10% each, and Firms E and F - 5% each
What is the value of the Herfindahl-Hirschman Index and how will the industry be categorized? A) 2,500; mildly concentrated B) 3,150; highly concentrated C) 8,100; highly concentrated D) 10,000; effectively competitive
When a firm operates with excess capacity, it must be in a monopolistically competitive market
a. True b. False Indicate whether the statement is true or false
One timing problem with fiscal policy to counter a recession is an "administrative lag" that occurs between the:
A. start of the recession and the time it takes to recognize that the recession has started. B. time the need for the fiscal action is recognized and the time that the action is taken. C. end of the recession and the time it takes to recognize that the recession has ended. D. time fiscal action is taken and the time that the action has its effect on the economy.