Suppose the production of a good results in negative externalities. If all costs are taken into account, then
A. output will occur at the socially optimal level.
B. the price of the product will be higher than if all costs are not taken into account.
C. more output will be produced than if all costs are not taken into account.
D. a and b
E. a, b, and c
Answer: D
You might also like to view...
Small time deposits of $100,000 or less are classified as
A) part of M1. B) FDIC insured. C) part of M2. D) highly liquid.
The typical shape for a yield curve is
A) gently upward sloping. B) mound shaped. C) flat. D) bowl shaped.
Which of these describes the real gross domestic product?
a. Gross domestic product from which depreciation costs have been deducted b. Gross domestic product that has been adjusted for changes in the price level c. Gross domestic product from which taxes have been deducted d. Gross domestic product that has been adjusted for changes in exchange rate e. Gross domestic product that has been adjusted for changes in interest rates
Stock prices may rise from a reduction in interest rates because:
A. financial market participants are less optimistic about future earnings. B. stockholders will expect lower future earnings. C. the present value of future earnings will decrease. D. consumer and business confidence about future growth improves.