Your next-door neighbor has a beautiful rose garden, but you are allergic to roses and cannot use your yard because of the rose pollen that drifts into your yard. In this case, the rose garden is an example of a
A. good that provides an external benefit.
B. good that imposes an external cost.
C. public good.
D. Pareto good.
Answer: B
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Based on the data in the above table, the table shows a market for a good with
A) an external cost. B) an external benefit. C) a mixed externality. D) no externalities.
A(n) ________ is represented by a leftward shift of the demand curve while a(n) ________ is represented by a movement along a given demand curve
A) increase in demand; decrease in quantity demanded B) decrease in demand; increase in demand C) decrease in demand; increase in quantity demanded D) decrease in quantity demanded; decrease in demand
Managers of profit centers usually have
a. A lot of discretion over decisions b. Most of their decisions overseen by corporate executives c. No discretion over decisions d. Given excessively high bonuses
Suppose Chip's Chips produces bags of potato chips. An example of a fixed cost for this company would be:
A. the factory building. B. the deep fryer. C. a potato peeling machine. D. All of these are examples of fixed costs.