When there are no externalities
A. social costs are less than private costs.
B. private costs equal social costs.
C. social costs are greater than private costs.
D. private costs are greater than social costs.
Answer: B
You might also like to view...
If a surplus of loanable funds exists in the loanable funds market, the real interest rate ________ and the quantity of saving ________
A) falls; increases B) rises; decreases C) falls; does not change D) rises; increases E) falls; decreases
If the required reserve ratio is .10, the demand deposit expansion multiplier is
A) .1. B) 4. C) 5. D) 10.
The Social Security check received by a retired couple
A. is included in the GDP because it is part of her income. B. is included in the GDP because she is entitled to it as a citizen. C. is excluded from GDP calculations because it is a transfer payment. D. is included in the GDP because it will be spent on goods and services.
If an economist states that not enough of a good is being produced, she usually means that
A) not everyone can afford the good. B) price exceeds marginal cost. C) consumer surplus equals zero. D) at equilibrium, some people who still wish to sell the good cannot find a buyer.