If a person does not pay all costs associated with a particular resource-using activity, then
A) the external costs of the activity are greater than the private costs of the activity.
B) the social costs of the activity are greater than the private costs of the activity.
C) the external costs of the activity are greater than the internal costs of the activity.
D) the full costs of the activity are the sum of private costs plus internal costs.
B
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The return on a 5 percent coupon bond that initially sells for $1,000 and sells for $950 next year is
A) -10 percent. B) -5 percent. C) 0 percent. D) 5 percent.
For a firm that wants to remain in business, which of the following costs could be avoided if it halted current production?
a. fixed costs b. variable costs c. sunk costs d. implicit costs
What role can the government play in correcting problems of imperfect information?
What will be an ideal response?
On the graph above, assuming that G = 0 and NX = 0, saving is above planned investment at point ________
A) A B) B C) G D) H E) none of the above