Externalities can only involve the imposition of harm on a party not directly involved in an economic transaction.
Answer the following statement true (T) or false (F)
False
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Tomas wants the city to convert a portion of an existing public park to a covered bus stop so it is more convenient to catch a bus to work each day. Michelle wants the city to expand the park so her kids have an even larger place to play outside
In this situation, Tomas's and Michelle's actions A) reflect natural and morally neutral preferences. B) are easy to separate into right and wrong. C) are all about greed and take no one else into consideration. D) have no possible way of resulting in compromise.
Get Smart University is contemplating an increase in tuition to enhance revenue. If GSU feels that raising tuition would enhance revenue, it is
a. ignoring the law of demand. b. assuming that the demand for university education is elastic. c. assuming that the demand for university education is inelastic. d. assuming that the supply of university education is elastic.
Mark owns a ranch in Colorado that costs $3.76 million per year to operate. Of that, his explicit cost equals $3.29 million. Therefore his actual monetary cost of running the ranch is:
a. $3.29 million. b. over $7 million. c. $470,000. d. $3.76 million.
The marginal productivity of labor will eventually decrease as more workers are employed because
A. the amount of capital will also be increasing. B. on the average each worker will have fewer inputs to work with. C. total product is decreasing. D. average product is increasing.