An externality exists when
A. there are opportunity costs.
B. there are internal costs.
C. there are private costs.
D. there are external costs.
Answer: D
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The profits of a proprietorship are
A) taxed at the same rate as the owner's other personal income. B) subject to a corporate tax. C) taxed as capital gains indexed for inflation. D) exempt from taxation.
Which of the following statements pertains to the four-firm concentration ratio? I. It is the percentage of the value of sales accounted for by the four largest firms in an industry. II
A high concentration ratio is indicative of a high degree of competition. III. The ratio is used to measure product differentiation. A) I only B) I, II only C) I, III only D) I, II, and III
What does "diminishing marginal utility" mean?
What will be an ideal response?
Which of the following changes is most likely to happen when there is a decrease in the supply of money in a market that was initially in equilibrium?
a. The demand for money increases b. Planned investment spending increases c. Interest rate increases d. Aggregate expenditure increases e. The demand for money decreases