An external BENEFIT occurs when
A. some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party.
B. the production or consumption of some good or service inflicts costs on a third party without compensation.
C. private costs exceed social costs.
D. private benefits exceed private benefits.
A. some of the benefits derived from the production or consumption of some good or service are enjoyed by a third party.
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The fact that 10 additional nations joined the European Union in May 2004 is an example of deepening
Indicate whether the statement is true or false
The sole owner of an unincorporated business unable to pay its debts
A. may be sued by the people to whom the business owes money. B. may be forced to pay them out of the owner’s own bank account. C. may be forced to sell the owner’s personal property to pay those debts. D. All of these responses are correct.
If people buy less chewing gum at every price when their incomes fall, then
a. chewing gum is a normal good b. the demand for chewing gum is downward sloping c. demand for chewing gum has increased d. the price of chewing gum has increased e. population has decreased
There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year.
If Katlandia builds a third army base, the country will have:
A. fewer than the efficient number of bases. B. the efficient number of bases. C. more bases than they can afford. D. more than the efficient number of bases.