When the benefits of an activity are received by those who are not directly involved in it, _____
a. a negative externality exists
b. the government is producing a free good
c. resources are being used in their highest-valued activity
d. the government has to compensate for the loss in social welfare
e. a positive externality exists
e
You might also like to view...
In monopolistic competition in the long run, firms ________
A) make zero economic profit and require more capacity B) incur an economic loss and require more capacity C) make an economic profit and have excess capacity D) make zero economic profit and have excess capacity
The Department of Justice could use the cross-price elasticity between products sold at Staples and Office Max to show that the firms are very similar.
Answer the following statement true (T) or false (F)
Which of the following statements best describes the concept of consumer surplus?
A) "I paid $89 for a microwave oven last week. This week the same store is selling the same microwave oven for $69." B) "Target was having a sale on tube socks so I bought 5 pairs." C) "I sold my hard copy of Harry Potter and the Half-Blood Prince to a used book store for $10 even though I was willing to sell it for $5." D) "I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses."
Which of the following might lead a nation to engage in international trade? a. Differences in natural endowments such as climate. b. Differences in skills of the labor force
c. Differences in endowments of natural resources. d. All of the above.