When a negative externality exists,
A. external costs are necessarily greater than private costs.
B. social costs equal private costs.
C. social costs are less than private costs.
D. social costs are greater than private costs.
E. none of the above
Answer: D
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In the Friedman "Fooling Model" if P(e) is less than P then the labor supply curve in Figure 17-1 above
A) shifts leftward when workers realize their error. B) always shifts rightward. C) initially remains the same. D) Both A and C are correct.
A significant decline in real GDP is called a
a. recession. b. depression. c. peak. d. trough.
If the total utility derived is 20 utils from two glasses of lemonade and 24 utils from three glasses of lemonade, the marginal utility of the third glass is _____
a. 4 utils b. 6 utils c. 20 utils d. 24 utils
When a U.S. company establishes a call center in India that answers its customer service calls, the United States is
A. outsourcing, a form of importing services B. outsourcing, a form of exporting services C. insourcing, a form of importing services D. insources, a form of exporting services