In the analysis of externalities and market failure, a third party is
a. the party a contractual agreement is meant to benefit
b. a person, or persons, who is unintentionally affected by the actions of others
c. the third person in a three-way contract
d. the person who owns the property right in a contract
e. the government attempting to mediate a dispute between the two other parties
B
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The smaller the percentage of voters required for collective action, the higher the external costs
a. True b. False
A large tax cut in the United States should lead to an increase in the trade deficit
a. True b. False Indicate whether the statement is true or false
Assume Gloria is initially in equilibrium and that X and Y are normal goods for her. Then the price of X falls. For Gloria to move to a new equilibrium point her consumption of
A. X must decrease. B. X must remain constant, but her consumption of Y must decrease. C. X must increase. D. both X and Y must decrease.
A change in the public's desire to hold money will
A) shift the IS curve. B) change the slope of the IS curve. C) shift the LM curve. D) change the slope and position of the LM curve.