External costs occur only with production and not consumption.
Answer the following statement true (T) or false (F)
False
There can be negative external costs in consumption as well as production. Secondhand smoke, vehicular pollution, and littering are a few external costs from consumption.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 13-2 shows the firm's demand and cost schedules. Refer to Table 13-2. What is the marginal profit from producing and selling the 5th case?
A. $10 B. $20 C. $30 D. $40
Last year, Leah bought a bond for $1,000 that promises to pay $105 a year. This year, a person who buys a bond for $1,000 receives $95 a year. If Leah were to sell her (old) bond, its price would be approximately
A) $818. B) $846. C) $905. D) $1,105. E) $1,273.
Most business firms in the United States are corporations.
Answer the following statement true (T) or false (F)