Private costs
A) are borne by producers of a good while social costs are borne by government.
B) are borne by consumers of a good while social costs are borne by government.
C) are borne by producers of a good while social costs are borne by society at large.
D) are borne by producers of a good while social costs are borne by those who cannot afford to purchase the good.
Answer: C
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A. decrease; not change B. increase; increase C. decrease; increase D. increase; decrease
Refer to Table 2-5. What is Estonia's opportunity cost of producing one cell phone?
A) 0.2 board feet of lumber B) 5 board feet of lumber C) 8 board feet of lumber D) 32 board feet of lumber
An economy that grows in world interdependence experiences
(a) growing trade on the basis of comparative advantage. (b) more vulnerability to the business cycles of trading partners. (c) wealth accumulation. (d) all of the above.
Adverse selection occurs when there is
A) full information. B) unobserved behavior. C) an unobserved characteristic. D) a worker who shirks because his boss does not watch him.