All solutions to market failures in markets for public goods or common resources:
A. try to force the internalization of externalities.
B. must be provided by the government.
C. are not perfect, and total surplus cannot be maximized in these markets.
D. need to be accepted by the affected parties to be effective.
A. try to force the internalization of externalities.
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"Second-hand" smoke, an often cited disadvantage of allowing smoking in restaurants, is referred to in economics as a(n)
A) capital good. B) externality. C) economic cost. D) negative investment.
All of the following, except one, are included in the profit earned by a firm's owners. Which is the exception?
a. the reward for developing new products b. the reward for moving an established business into new geographic markets c. the reward for risk taking d. salaries that compensate for the owners' time e. dividend payments to the stockholders
A legal limit on the quantity of a good that may be imported is called a(n) ________.
A. tariff B. import tax C. trade limit D. quota
If there is no change in price that can alter the quantity supplied, then the supply for the good is
A. inelastic. B. perfectly unit elastic. C. perfectly elastic. D. perfectly inelastic.