A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account. Refer to the above figures. An external cost exists. This will lead to a(n)
Ans: Overproduction equal to Q 1 minus Q 2.
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The process of converting a future amount of money into its value today is called
A) trending. B) depreciation. C) discounting. D) compounding.
When economists speak of markets, they primarily mean: a. places where production of goods and services take place
b. those locations where stocks and bonds of corporations take place. c. mechanisms that coordinate actions of buyers and sellers. d. the trillions of dollars that change hands in the foreign exchange markets.
Which of the following about economic growth is true?
a. The fastest growing economies in the world are mostly less developed countries. b. The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly high-income industrial countries. c. The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d. Both a and c are true.
Investment income is part of the capital account of the balance of payments.
Answer the following statement true (T) or false (F)