Internalizing the externalities means that
A) all costs have been accounted for.
B) all costs and benefits have been accounted for.
C) all benefits have been accounted for.
D) free-riders have paid a tax to the government.
B
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The total quantity of goods and services demanded by households, firms, foreigners, and government at varying price levels is
a. real GDP b. aggregate demand c. market demand d. total demand e. nominal GDP
The total revenue received by sellers of a good is computed by
What will be an ideal response?
The price elasticity of demand for leisure air travel is -1.60. Therefore, a
A. 16 percent decrease in the price of leisure air travel will cause a 10 percent increase in the amount of leisure air travel. B. 10 percent decrease in the price of leisure air travel will cause a 16 percent increase in the amount of leisure air travel. C. a 16 percent decrease in the price of leisure air travel will cause a 10 percent decrease in the amount of leisure air travel. D. 10 percent decrease in the price of leisure air travel will cause a 16 percent decrease in the amount of leisure air travel.
A change in demand would be illustrated by
a. a drop in price, which causes people to buy more. b. an increase in price, which causes people to buy less. c. a change in people’s preferences that causes them to buy either more or less than before. d. All of these.