When the social costs exceed the private costs, economists state that there is
A. an underproduction of output.
B. a negative externality.
C. a positive externality.
D. a waste of resources in production.
Answer: B
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Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded. B) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. C) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase. D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
An increase in price could occur due to a(n)
a. Increase in demand and no change in supply b. Decrease in supply and no change in demand c. An increase in demand and decrease in supply d. All of the above
If a firm in a perfectly competitive market faces a market price of $4, and it decides to produce 700 units, the firm's average revenue will be:
A. $4. B. $2,800. C. $175. D. $700.
The median voter model and the borda count are different names for the same methods of reaching a group decision
Indicate whether the statement is true or false