Which of the following statements is not true?
a. If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
b. If marginal externality costs are not zero, externalities exist.
c. An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
d. The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
e. When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.
d
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Suppose that in a series of paired-choice votes a new park is preferred to a new recreation center and a new recreation center is preferred to street widening. Also suppose that street widening is preferred to a new park. This set of votes is an example
of the: A. principal-agent problem. B. benefits-received principle. C. median-voter model. D. paradox of voting.
If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A) Irene has the absolute advantage in the production of chairs. B) Irene has the comparative advantage in the production of tables. C) Greg has the absolute advantage in the production of chairs. D) Greg has the comparative advantage in the production of chairs.
The nominal wage is the wage rate adjusted for changes in the price level
Indicate whether the statement is true or false
The primary problem with estimating elasticity of demand is that:
A. real-world changes in quantity demanded are the result of changes in price only. B. data on the quantities firms sell are unavailable. C. real-world changes in quantity demanded are the result of changes in many variables other than price alone. D. data on the prices firms charge are unavailable.