An economic activity in which benefits or costs affect third parties is called
A. a third-party good.
B. an externality.
C. the exclusion principle.
D. a public good.
Answer: B
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Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $15, how much economic profit does the firm make?
A) $0 B) $30 C) -$10 D) -$15
One of the reasons the velocity of M1 has risen over the long-run is
A) increased economic uncertainty. B) growth in the money supply. C) new techniques of cash management by corporate treasurers. D) an increase in the demand for money.
Less-developed countries are experiencing rapid population growth because birthrates are on the rise and mortality rates are falling
a. True b. False Indicate whether the statement is true or false
The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation. Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities. This is an example of
dealing with externalities by a. voluntary compliance. b. direct controls. c. taxes. d. the market mechanism.