Which of the following is true of markets characterized by positive externalities?
a. Social value exceeds private value, and market quantity exceeds the socially optimal quantity.
b. Social value is less than private value, and market quantity exceeds the socially optimal quantity.
c. Social value exceeds private value, and market quantity is less than the socially optimal quantity.
d. Social value seldom exceeds private value; therefore, social quantity is less than private quantity.
c
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People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering
A) cyclical unemployment. B) frictional unemployment. C) seasonal unemployment. D) structural unemployment. E) unnatural unemployment.
A cartel maximizes industry profit by
a. eliminating quotas b. producing at the kink in its demand curve c. producing where MR = MC d. cutting production costs to become more efficient e. producing more output than a monopoly would
An economic variable that moves in the opposite direction as aggregate economic activity in the business cycle is called:
(a) Acyclical; (b) Procyclical; (c) Countercyclical; (d) A leading variable.
When the production or consumption of some good or service inflicts costs on a third party without compensation it is called a(n) __________ __________.
Fill in the blank(s) with the appropriate word(s).