Which of the following gives rise to a pecuniary externality?
A) Excessive consumption of alcohol leading to ill health
B) Sudden increase in the demand for diamonds leading to an increase in their price
C) Deforestation leading to the extinction of many species
D) Globalization leading to the displacement of indigenous workers
B
You might also like to view...
Suppose the supply of farmland is infinitely inelastic and the demand for land is downward sloping but inelastic at the current equilibrium
If the supply curve shifts leftward (e.g., some farmland is permanently converted to other uses), what happens to the aggregate economic rents in this market? A) Decrease B) Increase C) Remain the same D) We do not have enough information to answer this question.
Which of the following is NOT a way to signal high quality
a. wearing a business suit on a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Doing messy chores before a big date
Which one of the following persons would be classified as unemployed by the Bureau of Labor Statistics?
What will be an ideal response?
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).Recall the Application. Price discrimination using recyclable soda bottles will work only if:
A. some consumers will buy the soda only if given a discount. B. all consumers are willing to buy the soda at the higher price. C. all consumers will not buy the soda at the lower price. D. the seller can only sell the refillable bottles for more than twice the cost of producing it.