Many external costs occur because
a. people do not pay the true cost of using a resource.
b. people do not pay the private cost of using a resource.
c. companies do not pay the market price for natural resources.
d. companies pay more than the true cost of using a resource.
A
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In the long run, an increase in aggregate demand: a. increases the price level and real output, but the effect on the price level is larger. b. increases the price level and real output, but the effect on output is larger
c. affects only real output. d. affects only the price level. e. affects neither the price level nor real output.
Money market mutual funds (MMMFs) accounts are
a. M1 money b. M2 and gold backed paper c. gold backed paper d. near money e. not money
Suppose that a firm operating in perfectly competitive market sells 100 units of output. Its total revenues from the sale are $500 . Which of the following statements is correct? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
Holding supply constant, an increase in demand leads to
A) lower prices and higher quantity supplied. B) lower prices and lower quantity supplied. C) higher prices and higher quantity supplied. D) higher prices and lower quantity supplied.