If an external cost exists, then who bears the external cost in an unregulated competitive market transaction?
A) nobody
B) the federal government
C) someone other than the producers
D) the buyers of the product
C
You might also like to view...
Refer to Figure 8.3. Holding other variables constant, if the economy is originally in equilibrium at the intersection of D2 and S2 and households increase their preference for leisure over labor, the economy would move to the new equilibrium point
represented by A) w1 and L2. B) w3 and L2. C) w2 and L2. D) w2 and L1.
Adding the quantities demanded by all consumers at every price will yield
A) the market-clearing price. B) the number of consumers. C) the total substitution effect from a price change. D) the market demand curve.
When new checkable deposits are created through loans,
a. the money supply contracts. b. excess reserves are destroyed. c. the money supply remains the same. d. the money supply expands. e. the required reserve ratio declines
Real wages increased in industrialized countries in the twentieth century because the demand for labor:
A. decreased, while the supply of labor increased. B. increased more slowly than the supply of labor increased. C. increased, while the supply of labor decreased. D. increased more rapidly than the supply of labor increased.