What does it mean to say that a firm has been made liable?
a. The firm is legally responsible to compensate other parties for damage.
b. The firm has begun to treat any external costs as private costs.
c. The firm has received the property rights to a disputed resource.
d. The firm is required to pay a Pigou tax to the government.
a. The firm is legally responsible to compensate other parties for damage.
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As output increases, AVC approaches ATC because of
A) diseconomies of scale. B) diminishing marginal returns. C) decreasing average fixed cost. D) increasing marginal cost.
If the payment stream of a bond remains the same and the price of the bond goes down, the
A) effective yield is unchanged. B) effective yield rises. C) effective yield decreases. D) bond is reissued to reflect the higher interest rate. E) bond is reissued to reflect the lower interest rate.
Any international transfer made on concessional terms for the purposes of promoting economic development is
a. foreign aid b. first aid c. immigration d. private investment e. remittances
Which of the following is true when an economy is producing efficiently?
A. The economy is producing outside the production possibilities curve. B. Everyone in the economy is happy. C. The economy is producing on the production possibilities curve. D. The economy is getting the fewest goods and services from the available resources.