What does it mean for a producer to internalize an? externality?
A. The producer is prohibited from producing products which generate externalities.
B. The producer must find ways to address externality problems which extend beyond geographic borders.
C. The producer is limiting outsourced production.
D. The producer is forced to factor into production costs the cost of the externalities created in their production of output.
Answer: D. The producer is forced to factor into production costs the cost of the externalities created in their production of output.
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A permanent negative supply shock leads to ________ real interest rates ________
A) higher; in both the short and long runs B) higher; in the short run but not in the long run C) lower; in both the short and long runs D) lower; in the short run but not in the long run
Which of the following, necessarily, equals zero when the firm's short-run output level is zero?
a. sunk costs b. fixed costs c. implicit costs d. variable costs e. opportunity costs
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
The public is willing to pay $14 for the ________ acre of parkland.
A. 2nd B. 6th C. 4th D. 8th
Luxury items tend to have ________ demand, and necessities tend to have ________ demand.
A. relatively inelastic; elastic B. perfectly elastic; perfectly inelastic C. unit elastic; perfectly inelastic D. relatively elastic; inelastic