Basic supply and demand analysis can be used to explain how externalities lead to environmental problems

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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An externality exists whenever

a. the economy cannot benefit from government intervention. b. markets are not able to reach equilibrium. c. a firm sells its product in a foreign market. d. Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence.

Economics

In 2006, the U.S. savings rate was:

A. positive. B. negative. C. zero. D. at a record high level.

Economics

The most basic concept in economics is

A. human need. B. scarcity. C. wealth. D. income.

Economics

Any business wanting to attract financial capital must expect to

A. keep implicit costs as close to zero as possible. B. earn a positive economic profit. C. pay a normal rate of return. D. pay a below normal rate of return in order to make a positive rate of return itself.

Economics