An negative externality is present whenever:
a. the private marginal cost of an activity exceeds the private marginal benefit.
b. the private marginal benefit of an activity exceeds the private marginal cost.
c. the social marginal cost of an activity exceeds the private marginal cost.
d. none of the above
c
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Fill in the blank: According to the text a commercial society cannot develop successfully in the absence of ________
A) the rule of law B) low interest rates C) central economic planning D) massive government works projects E) perfect and complete information
Generally, specialization leads to
A) constant opportunity costs. B) greater productivity. C) the production of fewer capital goods. D) greater self-reliance.
An increase in all prices is inflation
a. true b. false
The World Bank estimates that? _______ of the? world's people live on less than? $1.50 per day.
Fill in the blank(s) with the appropriate word(s).