On Saturdays, Stan goes to the park to play his saxophone. Some of the people in the park love listening to Stan play, while others find his music really annoying. In this case, Stan's saxophone playing generates:
A. a positive externality.
B. both positive and negative externalities.
C. a negative externality.
D. neither a positive nor a negative externality.
Answer: B
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Investments that a bank makes are known as:
A) deposits. B) liabilities. C) assets. D) capital.
Which of the following situations results from a ticket price to a concert set below the equilibrium price? a. A long line of people wanting to purchase tickets to the concert
b. No line of people wanting to buy tickets to the concert. c. Tickets available at the box office, but no line of people wanting to buy them. d. None of the above.
Tsintah weaves traditional Navaho rugs. She weaves and sells 50 rugs. Her average cost of production per rug is $50 . She sells each rug for a price of $65 . Tsintah's total revenues are
a. $750. b. $2,500. c. $3,250. d. $5,750.
If a product has several good substitutes, demand for the product is most likely to be:
A. very inelastic. B. inelastic. C. unit elastic. D. elastic.