If the social cost of producing a good or service exceeds the private cost
A) the sum of consumer surplus and producer surplus is maximized.
B) a positive externality exists.
C) the market achieves economic efficiency.
D) a negative externality exists.
D
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In economics, the term "capital" refers to
A) the money in one's pocket. B) buildings and equipment. C) mineral resources. D) consumer goods.
Larry buys stock in A to Z Express Company. Curly Corporation builds a new factory. Whose transaction would be an act of investment in the language of macroeconomics?
a. only Larry's b. only Curly Corporation's c. Larry's and Curly Corporation's d. neither Larry's nor Curly Corporation's
The market and public sector are similar in that
A. there is competition among the participants in both sectors. B. the participants in both sectors react to incentives. C. the resources used in both sectors are scarce. D. All of these are true.
If TR > TVC but TR < TC, a firm would ________ in the short run and ________ in the long run.
A. operate; expand B. shut down; expand C. shut down; exit the industry D. operate; exit the industry