Social costs are
A. external costs minus internal costs.
B. costs borne by society whenever a resource-using action takes place.
C. costs incurred in governmental welfare programs.
D. costs incurred by government and borne by all taxpayers.
Answer: B
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Suppose an economy had an inflation rate of 7 percent last year. This has decreased to 6 percent this year. This means that the economy is: a. suffering from hyperinflation. b. experiencing deflation. c. experiencing disinflation
d. experiencing a wage-price spiral. e. experiencing a decrease in real wage.
Economic reasoning suggests that individuals should spend little time learning about election candidates and other electoral issues because:
a. marginal benefit is zero. b. the information cost is too high compared to the benefit to the individual. c. information is easily available. d. the result of the election are unlikely to have a serious impact on a market-driven economy.
In reality international trade is determined solely by comparative advantage and the free market forces of supply and demand
a. True b. False Indicate whether the statement is true or false
In economics, the short run refers to a period of time in which
a. demanders can change their minds about what to buy at what prices b. demanders and suppliers can negotiate prices c. price is fixed d. suppliers can change some, but not all, of their inputs e. output is fixed