The presence of a positive externality in a market leads to ________
A) an underproduction of the good
B) an overproduction of the good
C) a deadweight loss
D) a fall in the consumer surplus
A
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The fee charged by the seller of an option is referred to as the
A) market price. B) option premium. C) futures fee. D) call price.
The 2001-2007 economic expansion began when a change in Federal Reserve policy and other global conditions caused interest rates to drop and stay low
a. True b. False
Which of the following illustrates how diminishing marginal product can occur?
a. Once Sue hired Lynne to handle accounts receivable and Michael to handle accounts payable, she was able to keep up with payroll, taxes, and other administrative tasks. b. Scheduling additional stylists at the salon on Saturday caused mix-ups and delays because there were still the same number of washing and cutting stations available. c. When their team manager was on vacation, Xan and Martine stepped in to lead staff meetings and make sure updated sales figures were reported to management. d. Kurt prefers to work alone, so he runs a one-man embroidery shop, even though it means long hours and learning the hard way to keep up with payments and billing.
How do you interpret the value of cross-price elasticity?
What will be an ideal response?