Global warming has become a major international environmental issue. Using the concept of externality, explain why countries around the world seldom reach an agreement to reduce the use of fossil fuels.
What will be an ideal response?
External benefits are positive impacts of an individual or a party's action on other people's well-being. If a country does its share to abate pollution, neighboring countries enjoy external benefits without having to pay for it. Furthermore, since such external benefits are nonexcludable, neighboring countries tend to become free-riders.
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Which of the following types of firms practices price discrimination?
a. airlines b. movie theaters c. colleges d. all of the above
Persistence is
A) the tendency for declines in economic activity to be followed by further declines, and for growth in economic activity to be followed by more growth. B) the idea that the standard pattern of contraction—trough—expansion—peak occurs again and again in industrial economies. C) the tendency of many economic variables to move together in a predictable way over the business cycle. D) the idea that peaks and troughs of the business cycle occur at regular intervals.
A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others. B) only in some states. C) to low income residents in some states. D) to many individuals at no additional cost.
Explain how supply and demand create equilibrium in the marketplace
What will be an ideal response?