An external cost is a cost of producing a good or service that is
A) not paid by the producers.
B) paid by the producers.
C) paid by the government.
D) paid by the consumer and the government.
A
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Refer to Table 16.2. Real GDP for Fredonia for 2016 using 2015 as the base year equals
A) $2,750. B) $3,500. C) $4,325. D) $5,500.
Dividing the dividend payment by the stock's closing market price determines the
A) dividend yield. B) coupon payment. C) price-earnings ratio. D) selling price of the stock.
If a good is produced by firms that incur all private and external costs, the price consumers pay
A) will be efficient since it includes all social costs. B) will be too low. C) will be too high because the consumers end up paying all of the costs instead of the firm. D) will be the correct price, but inefficient.
Why is there more than one definition of the money supply? What is the difference between them?