Which one of the following is an example of an external cost?
A. emissions from a factory
B. a house payment owed by a friend
C. the cost to attend college
D. labor costs to a firm
Answer: A
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Economic profit is greater than or equal to accounting profit
a. True b. False Indicate whether the statement is true or false
Jimbo has a comparative advantage over Ned in producing a good if:
A. Jimbo can produce more of the good than Ned can in a given time period. B. Jimbo has a lower opportunity cost of producing the good than does Ned. C. Jimbo has to trade off more than Ned does to produce the good. D. Jimbo has a higher opportunity cost of producing the good than does Ned.
Gross domestic product (GDP) is the ________ in a given time period
A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy
Flat taxes are more equitable than graduated tax schedules.
A. True B. False C. Uncertain