An externality occurs when ________
A) the quantity demanded of a good exceeds the quantity supplied
B) the quantity supplied of a good exceeds the quantity demanded
C) the government regulates production and consumption decisions
D) an economic activity affects third parties not engaged in the activity
D
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The relationship between interest rates and investment spending is graphed as
A) a vertical line. B) a horizontal line. C) an upward sloping curve. D) a downward sloping curve.
Which of the following are examples of the gross private domestic investment component of GDP?
I. the purchase of production machinery by IBM II. an increase in the finished goods inventory at Intel A) I only B) II only C) both I and II D) neither I nor II
The techniques of regulation used in the U.S. are
(a) meant to solve basic problems, but they create others. (b) meant to re-enforce the "decisions of the marketplace." (c) meant to manage problems rather than solve them. (d) designed to make the economy more efficient than is possible with only the free market mechanism.
Is the European Monetary Union a form of dollarization? Explain.
What will be an ideal response?