In a competitive market, a negative externality creates a deadweight loss because
A) the cost of the externality is double counted.
B) a harm is generated.
C) price equals social marginal cost.
D) price equals private marginal cost.
D
You might also like to view...
Refer to the above figure. The curve reflects
A) the law of diminishing marginal product in labor. B) the law of diminishing marginal product in capital. C) the law of increasing marginal product in labor. D) the law of increasing marginal product in capital.
In the short run, who tends to benefit from a decrease in the exchange rate?
A) domestic producers B) owners of domestic-currency assets C) domestic consumers D) foreign producers
The population theory of Thomas Malthus
(a) would have predicted the changes in per output in this country in the 19th century and up to 1910. (b) would lead you to expect a powerful surge in physical output as the immigration poured in. (c) would not have predicted the positive trend increase in per capita output and income in 1860–1910. (d) does not apply to any of the above.
Which of the following is true?
a. A nation cannot have a comparative advantage in the production of every good. b. A nation cannot have an absolute advantage in the production of every good. c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. e. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.