The spillover effects of actions that affect the well-being of nonconsenting third parties are called
a. side components.
b. externalities.
c. free riders.
d. internalizations.
B
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The market demand curve for coffee is the same as the
A) marginal social cost curve of coffee. B) marginal social benefit curve of coffee. C) opportunity cost curve of coffee. D) marginal social benefit curve minus the marginal social cost curve of coffee.
For a monopoly, price always equals marginal revenue
a. True b. False Indicate whether the statement is true or false
A firm, such as a public utility, which is the sole producer in a market in which the government determines prices and standards of service, is known as a(n):
a. local monopoly. b. natural monopoly. c. regulated monopoly. d. oligopoly. e. monopolistically competitive firm.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The real risk-free interest rate falls, and nominal value of the domestic currency rises. c. The real risk-free interest rate rises, and nominal value of the domestic currency rises. d. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. e. The real risk-free interest rate falls, and nominal value of the domestic currency falls.