When a person can pass some of her costs of using a resource on to someone else,
A. she uses too much of the resource.
B. the use of the resource is not affected by her actions.
C. the internal costs of using the resource exceed the private costs.
D. she uses too little of the resource.
Answer: A
You might also like to view...
Which of the following is not a reason why the U.S. economy has been more stable since 1950?
A) Unemployment insurance and other government programs curtail the decline in spending that occurs during a recession. B) Services have become a larger fraction of GDP and goods have become a smaller fraction of GDP. C) Goods have become a larger fraction of GDP and services have become a smaller fraction of GDP. D) The government has actively pursued policy to combat recessions and prolong expansions.
The main cause of low per capita income is ________
A) a low level of capital B) a small workforce C) low productivity of capital and labor D) slow growth of capital and labor shares of income E) none of the above
The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called
A) deadweight loss. B) comparative loss. C) Lerner Loss. D) Consumer Value Loss.
If a bank borrows from a Federal Reserve Bank, the interest rate is called
A. the discount rate. B. the prime rate. C. the Fed funds rate. D. the reserve availability rate.