The concept of external benefit is associated with a negative externality, but not with a positive externality
a. True
b. False
Indicate whether the statement is true or false
False
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In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
When a transfer price is set lower
a. the profits of the division producing the intermediate product will rise b. the profits of the division producing the intermediate product will fall c. the costs of the division producing the intermediate product will rise d. the costs of the division producing the intermediate product will fall
Firms in perfectly competitive markets: a. are price takers
b. are price makers. c. influence price by varying the quality of output. d. sell heterogeneous products.
When a firm experiences a positive technological change
A) the price of a share of the firm's stock rises. B) the firm is able to produce more output using the same inputs, or the same output using fewer inputs. C) the value of the firm's assets rises. D) the firm will hire additional workers in order to increase production.