Unpriced by-products of production or consumption that provide benefits to other consumers or other firms are known as
a. negative externalities
b. common pool benefits
c. positive externalities
d. private benefits
e. Coase by-products
C
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Asarta Inc. is polluting into the nearby aquifer and the citizens of Buttersville demand that this be cleaned up. If the benefit to cleaning up the aquifer is estimated to be about $125,000 and the cost is estimated at $130,000, will the aquifer get cleaned?
A. Uncertain, with the information given. B. No, because the costs outweigh the benefits. C. Yes, because the benefits outweigh the costs. D. Yes, because the benefit is high.
The figure above illustrates a small country's production possibilities frontier. Based on the figure, we can tell that the nation's resources are
A) not equally productive in all tasks because the production possibilities frontier is bowed out. B) unlimited because the slope is negative and the PPF is bowed out. C) equally productive in all tasks because the slope is negative. D) not equally productive in all tasks because the slope is negative. E) equally productive in all tasks because the production possibilities frontier is bowed out.
Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields her $200 for sure. Option B has a 0.4 probability of yielding $100 and a 0.6 probability of yielding $300. Marylou
A) picks option A. B) picks option B. C) is indifferent between option A and option B. D) needs more information to make a choice.
Explain what information that changes in the value of a firm's stocks provide for a firm's managers and for investors
What will be an ideal response?