The trains of the Transcontinental Railway Company, when shipping goods, sometimes emit sparks that start fires along the tracks and damage the property of others. If Transcontinental does not pay for the damage it causes, what has occurred?
A. Positive externality.
B. Demand-side market failure.
C. Supply-side market failure.
D. All of these.
Answer: C
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According to the economic way of thinking, alcohol prohibition in the U.S
A) effectively destroyed peoples' incentives to produce and drink liquor. B) abolished the supply and demand process in liquor. C) led to a surge in prices and considerable profit opportunities for people willing to break the law. D) failed to make liquor truly illegal.
The currency adopted by most countries in ________ is referred to as the euro
A) Western Europe B) Europe and Asia C) Southern Europe and Northern Africa D) Eastern Europe
Price elasticity of demand is measured by the percentage change in
a. income divide by the percentage change in price b. quantity demanded divided by the percentage change in income c. price divided by the percentage change in quantity demanded d. quantity demanded divided by the percentage change in price e. total revenue divided by percentage change in price
Exhibit 8-1 Quantity and total revenue data for a firm Quantity Total Revenue 0 $ 0 1 62 2 124 3 186 Exhibit 8-1 indicates that this firm is operating in which type of market structure?
A. The market structure cannot be determined from the information given. B. monopoly C. perfect competition D. monopolistic competition