Which of the following are true?
a. Negative externalities are real costs, but, unlike the other resources a firm uses in production, no one owns the air, so a firm does not have to pay for its use.
b. In the case of external costs, firms tend to produce too much from society's standpoint, causing an efficiency loss due to an overallocation of scarce resources to the production of the good.
c. If government could impose a pollution tax equal to the exact size of the external costs imposed by a firm, then the firm would produce at the socially desired level of output.
d. All of the above are true.
d
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List two economic reasons why representative democracy makes sense
What will be an ideal response?
Which of the following statements best represents the law of supply?
A) Price and quantity supplied are inversely related. B) Price and quantity supplied are directly related. C) Price and quantity supplied are inversely related, ceteris paribus. D) Price and quantity supplied are directly related, ceteris paribus. E) Price and supply are directly related, ceteris paribus.
A firm that does business in many different countries is called a __________________.
Fill in the blank(s) with the appropriate word(s).
Which of the following will cause the money multiplier to become smaller?
A) an increase in high powered money B) a decrease in the ratio of reserves to checkable deposits C) an increase in the public's preference for checking deposits as opposed to holding currency D) a reduction in high powered money E) none of the above