Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?
a. The social cost of producing good X includes the private cost plus the cost to bystanders of the externality.
b. The increased social cost can be graphed as a decrease in demand.
c. The market equilibrium quantity will be the socially optimal quantity as long as the government does not interfere.
d. Both a and b are correct.
a
You might also like to view...
In September 2014, 32 percent of unemployed workers had been unemployed for 6 months or more. This long-term unemployment is of particular concern because
A) long-term unemployment is the most costly type of unemployment. B) the U-3 unemployment rate no longer includes these workers in the measurement since they are long-term unemployed. C) the employment-to-population ratio no longer includes these workers in the measurement since they are long-term unemployed. D) the labor force participation rate no longer includes these workers in the measurement since they are long-term unemployed.
When there is only one buyer in the market
A) a closed shop exists. B) a monopsony exists. C) then the market will be perfectly competitive. D) the supply curve for the good will be perfectly elastic.
The highest-income fifth of the U.S. population earns more than 50 percent of all income
a. True b. False Indicate whether the statement is true or false
The most prevalent type of damage associated with hazardous waste sites is
a. water and soil contamination b. loss of livestock c. fish kills d. air pollution