When beneficial externalities are present in a market, the actual output will be
A. greater than the optimal output.
B. smaller than the optimal output.
C. equal to the optimal output.
D. either smaller or greater than the optimal output.
Answer: B
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Marginal cost is the
A) cost of an increase in an activity. B) total cost of an activity. C) cost of an activity minus the benefits of the activity. D) cost of all forgone alternatives.
Eggs are considered a poor medium of exchange principally because of their
a. durability b. portability c. volatility d. fragility e. abundance
Are we passing the national debt burden on to our children?
What will be an ideal response?