If consumption of a good by one person imposes costs on a party other than the producer,
a. the consumption creates a positive externality
b. the good is a public good
c. the consumption creates a negative externality
d. too little of the good is produced from society's point of view
e. the market will correct the problem if left alone
C
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Drinking a can of cola gives Richard 20 utils of satisfaction. How many additional utils would you expect Richard would get from drinking a second can of cola?
(a) 20 utils. (b) Less than 20 utils. (c) More than 20 utils. (d) 40 utils.
Martha lives near a paper mill. If she is concerned about the effects of the air pollution from the plant, she should contact which regulatory agency?
A. Consumer Product Safety Commission (CPSC) B. Environmental Protection Agency (EPA) C. Food and Drug Administration (FDA) D. Occupational Safety and Health Administration (OSHA)
If marginal costs exceed marginal benefits, then:
A. the firm should decrease its production level. B. the firm's average costs exceed average benefits. C. the firm ends up with a net loss. D. None of the statements associated with this question are correct.
Increase the number of patients we see by 10% within the next twelve months.
SMART Not SMART