The cost or benefit of a market activity borne by a third party is
A. A government directive.
B. An externality.
C. Black-market economic activity.
D. A monopoly.
Answer: B
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Refer to Figure 4-1. If the market price is $1.50, what is the consumer surplus on the first burrito?
A) $0.50 B) $1.00 C) $1.50 D) $7.50
The longer you have to wait to receive a payment,
A) the lower the interest rate you will charge on the payment. B) the more you are willing to discount the payment. C) the greater value it will have to you. D) the less value it will have to you.
In setting the price of its product, a monopolistic competitor sets the price equal to its marginal cost plus an amount called the
A) markup. B) profit. C) rent. D) menu cost.
What are the functions of money?
a. Medium of exchange, store of value, unit of account, standard of deferred payments b. Payment of credit, store of debt, unit of account, medium of exchange c. Medium of exchange, store of debt, unit of account, standard of deferred payments d. Payment of credit, store of value, unit of account, medium of exchange