If a production process involved the creation of a negative externality, then the social cost of production would be:
A. larger than the private cost of production.
B. the same as the private cost of production.
C. smaller than the private cost of production.
D. zero.
A. larger than the private cost of production.
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Assuming government's goal is to benefit society as much as possible:
A. actions with negative and positive externalities should be encouraged. B. actions with negative externalities should be restricted and actions with positive externalities should be encouraged. C. actions with negative and positive externalities should be restricted. D. actions with negative externalities should be encouraged and actions with positive externalities should be restricted.
Owners of proprietorships
A. are not subject to paying any taxes on their firms' income. B. report their firms' income directly on their individual income tax returns. C. must pay the corporate profits tax as well as report their firms' income directly on their individual income tax returns. D. must pay the corporate profits tax.
Everything else held constant, a monetary contraction is characterized by ________ output and ________ interest rates
A) rising; rising B) rising; falling C) falling; rising D) falling; falling
An increase in net exports reduces aggregate demand.
Answer the following statement true (T) or false (F)