Externalities can lead to inefficient economic outcomes because:
A) firms do not have to pay the full cost associated with using inputs that cause pollution.
B) firms that produce public goods tend to be monopolies.
C) Both A and B are correct.
D) none of the above
A
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Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development
a. True b. False Indicate whether the statement is true or false
The problem of double counting when calculating GDP is solved by
a. subtracting imports from exports b. counting only goods, not services c. summing total sales receipts of all firms d. summing only the value added by each firm e. using the capital consumption allowance
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The legal requirement to pass this test before practicing law allows the Bar Association to act as a
A. monopsony. B. union that can restrict the supply of lawyers. C. union that can increase the number of lawyers. D. bilateral monopoly.
Which of the following statements is most accurate?
A. Central bank statements in developed countries differ in length but are similar in the speed with which policy changes are announced. B. Central bank statements in developed countries are similar both in length and in the speed with which policy changes are announced. C. Central bank statements in developed countries differ both in length and in the speed with which policy changes are announced. D. Central bank statements in developed countries are similar in length but differ in the speed with which policy changes are announced.