When a negative externality exists, the private market produces
A) more than the economically efficient output level.
B) less than the economically efficient output level.
C) products at a low opportunity cost.
D) products at a high opportunity cost.
Answer: A
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The Jerry-Berry Ice Cream Shoppe's total cost schedule is in the above table. Based on the table, the marginal cost of producing the fourth gallon of ice cream is
A) $2. B) $3. C) $5. D) $8. E) $32.
The WTO seems at times to be interfering in domestic policy since
A) the line between domestic policies and de factor protectionism is often fuzzy. B) it is a supra-national organization with the power to overturn governments. C) it determines which nations may trade what with whom. D) it punishes naughty nations. E) it exempts the U.S. and other powerful member nations from many of its edicts.
The merger of two pizza restaurant chains would be an example of
A) a horizontal merger. B) a vertical merger. C) a conglomerate merger. D) an independent merger.
In Figure 1.2, which labeled points represent the existence of unemployment? 
A. only A B. only B and C C. only D D. A, B, and C