A positive externality
a. is a benefit to the producer of the good.
b. is a benefit to the consumer of the good.
c. is a benefit to someone other than the producer and consumer of the good.
d. results in an optimal level of output.
c
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If Real GDP increases at an annual rate of 3 percent and velocity increases at a rate of 2 percent per year, then rules-based monetary policy advocates who wish to maintain a stable price level would set the annual money supply growth rate at
A) -2 percent. B) 0 percent. C) 1 percent. D) 6 percent. E) -1 percent.
In the long run, profits in a monopolistic competition market are zero because:
a. of government regulations. b. of collusion. c. firms are free to enter and exit the market. d. firms produce a differentiated product.
Between the years of 2001 and 2003, what happened to the structural deficit?
A. It declined rapidly. B. It fell steadily. C. It increased steadily. D. It remained fairly constant.
With a vertical LM curve, an increase in the money supply can be matched by an equal increase in money demand only through ________, which causes monetary policy to be particularly ________
A) a rise in income, strong B) a rise in income, weak C) a fall in the interest rate, strong D) a fall in the interest rate, weak