When negative externalities are present, it means that:
A. production and consumption is above the socially optimal level.
B. individuals don't take into account all the costs associated with their market choice.
C. society bears part of the cost borne of private transactions.
D. All of these statements are true.
Answer: D
You might also like to view...
A monopolistic firm
A) will never sell a product whose demand is inelastic at the quantity sold. B) can sell as much as it wants for any price it determines in the market. C) cannot determine the price, which is determined by consumer demand. D) cannot sell additional quantity unless it raises the price on each unit. E) will always earn a profit in the long run.
A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar
When the fleet arrived the exchange rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer. B) This change in the foreign exchange rate will hurt the Japanese exporter. C) This change in the foreign exchange rate will benefit the U.S. importer. D) This change in the foreign exchange rate will benefit the Japanese exporter.
In 2001, Alex Rodriguez, a baseball player, was given a contract paying about $25 million per year.This contract was significantly higher than that of any other player in baseball.One explanation for "A-Rod" receiving such high compensation is the superstar effect
a. True b. False Indicate whether the statement is true or false
The more elastic the demand for a good, the smaller the deadweight loss from the tax imposed on the good
a. True b. False Indicate whether the statement is true or false