Suppose a state discovered chemical compounds in their water. The source of these chemicals is the waste discharges of industrial plants in another state. This is an example of a(n):
a. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods.
b. external cost imposed by the industrial plants of another state.
c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs.
d. all of these.
d
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The recession of 2001 began in ________ and ended in ________
A) March; November B) February; December C) April; October D) February; October
A point outside (to the right of) the production possibilities frontier is
A. inefficient. B. not attainable. C. efficient. D. easily attainable.
If you know that a meal costing $40 in the United States would cost $2 in Bangladesh and this is representative of the relative prices of most goods, you also know that:
A. GDP using market prices would overstate the value of output for the United States. B. GDP using market prices would overstate the value of output for Bangladesh. C. purchasing power parity would decrease comparative GDP for Bangladesh. D. purchasing power parity would increase comparative GDP for Bangladesh.
If my wage rate increases, utility maximization requires that my quantity of labor supplied
a. increase b. decrease c. increase if the income effect dominates the substitution effect d. increase if the substitution effect dominates the income effect e. increase if the substitution effect equals the income effect