Social costs are
A) costs borne by society whenever a resource-using action takes place.
B) costs incurred by government and borne by all taxpayers.
C) costs incurred in governmental welfare programs.
D) external costs minus internal costs.
Answer: A
You might also like to view...
An uninformed party can use ________ to learn about the information held by the informed party
A) signaling B) screening C) a warranty D) educational attainment
If price elasticity of demand is 2.0, this implies that consumers would
a. buy twice as much of the good if price falls by 10 percent b. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent c. buy 2 percent more of the good in response to a 1 percent cut in price d. require at least a $2 increase in price before showing any response to the price increase e. buy twice as much of the good if the price drops 1 percent
To close a $100 recessionary gap, with MPC = 0.5, the government can
a. increase its spending by $100 b. decrease its spending by $100 c. increase its spending by $200 d. increase its spending by $200 e. decrease its spending by $50
A change in the price of one good results in a rotation of the budget line, so that it is steeper or flatter
a. True b. False Indicate whether the statement is true or false