A positive externality is internalized when
A. demand shifts to the right until the socially optimum level of output is obtained.
B. demand shifts to the left until the socially optimum level of production is obtained.
C. supply shifts to the left until the socially optimum level of production is obtained.
D. b and c
E. none of the above
Answer: A
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Property and casualty insurance companies are organized
A) both as stock and mutual companies. B) only as stock companies. C) only as mutual companies. D) primarily as cooperatives.
(Last Word) In 1960 the ratio of workers to Social Security and Medicare beneficiaries was ______; by 2040 it is projected to be _________
A. 10:1; 3:1 B. 3:1; 2:1 C. 5:1; 2:1 D. 2:1; 3:1
Behavioral economics attempts to make better predictions about human behavior by combining insights from the following fields, except:
A. Economics B. Biology C. Physics D. Psychology
A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on movies. She knows then that
A. the price of movies must have decreased or the price of food must have increased. B. the price of movies must have increased or the price of food must have decreased. C. the price of food must have increased. D. the price of movies must have decreased.