When a transaction between a buyer and seller directly affects a third party, the effect is called an externality
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
As of 2011, which of the following was the largest stock exchange in terms of total value traded?
A) the New York Stock Exchange B) London Stock Exchange C) Shanghai Stock Exchange D) Tokyo Stock Exchange
Food stamps _____
a. do little to increase demand for agricultural products b. make certain low-income individuals eat healthy foods c. increase demand for agricultural products d. help fight obesity
What are market failures? Discuss examples of market failures. What can government do to improve the results of market failures?
When the market price is below the equilibrium price, the quantity of the good demanded exceeds the quantity supplied
a. True b. False Indicate whether the statement is true or false