An example of an externality occurs when a chemical factory
A) is producing ethanol and dumps waste in a river upstream from a popular fishing spot.
B) produces fertilizers that do not help plants grow.
C) produces fertilizers that kill plants rather than feed them.
D) overworks its employees.
A
You might also like to view...
The figure supports all of the following statements regarding the marginal factor cost curve for a monopsonist EXCEPT
A) the monopsonist firm looks at a marginal cost curve, MFC, which slopes upward and is above its labor supply curve. B) the marginal benefit of hiring additional workers is given by the firm's MRP curve. C) the intersection of MFC with MRP, at point E, determines the number of workers hired. D) a monopsonist cannot find the profit-maximizing quantity of labor demanded at E.
Other things constant, as the price of a resource increases,
a. the quantity of the resource demanded falls. b. the quantity of the resource supplied falls. c. the price of the product the resource helps to produce falls. d. there is less of an incentive for users of the resource to find substitute resources.
In The General Theory of Employment, Interest, and Money, Keynes
A. recommended international trade to increase economic stability after recessions. B. encouraged government actions to shorten the recovery time of recessions.. C. supported free markets. D. observed budget surpluses were necessary fixes following budget deficits.
A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade):$20 per bottleDomestic production (free trade):500,000 bottlesDomestic production (after tariff):600,000 bottlesDomestic consumption (free trade):750,000 bottlesDomestic consumption (after tariff):650,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to ________ by about
A. rise; $2.75 million. B. fall; $2.5 million. C. rise; $1 million. D. rise; $500,000.