Global warming, which causes unfavorable climatic changes due to the burning of fossil fuels, would be an example of a(n):
a. positive externality
b. negative externality.
c. internalized externality.
d. Coase externality.
b
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Refer to the table above. The total cost per month is the highest if Apartment ________ is rented
A) 2 B) 3 C) 4 D) 5
A tax has an excess burden whenever
a. people are unable to alter their behavior to avoid paying it. b. government seeks to raise it. c. it raises a great deal of revenue. d. it induces people to change their behavior.
For most students attending state universities, the largest cost component of going to college is
a. the cost of books and supplies. b. the cost of room and board. c. tuition. d. the opportunity cost in terms of forgone current income from the time spent attending college.
The endowment effect is used to describe the mistake a consumer makes when he accounts for the monetary costs of his decisions but ignores the nonmonetary opportunity costs.
a. true b. false