When negative externalities are involved, the market is said to
A. fail, because it underproduces the good connected with the negative externality.
B. fail, because it overproduces the good connected with the negative externality.
C. succeed, because it produces the socially optimal quantity of the good connected with the negative externality.
D. be "in optimum," because the equilibrium fully adjusts for the negative externality.
Answer: B
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In the figure above, a factor that could cause the supply of bonds to increase (shift to the right) is
A) a decrease in government budget deficits. B) a decrease in expected inflation. C) expectations of more profitable investment opportunities. D) a business cycle recession.
In the early 1900s, regulation of the use of child labor
a. was supported by trade unions. b. was first legislated by some states, and later by the federal government. c. was sometimes indirectly accomplished through compulsory school laws. d. through federal legislation was initially struck down by the Supreme Court. e. All of the above.
An example of organizational architecture based on customer location is when divisions are defined as
a. R&D, Engineering, Production, Marketing, Sales b. Component 1 Plant, Component 2 Plant, Component 3 Plant, Final Assembly c. Store 1, Store 2, Store 3, Region A, Region B, Sales Division d. Business Customers, Educational Customers, Household Customers
In the short run, the ratio of the change in total cost and the change in output is greater than the ratio of the change in variable cost and the change in output
a. True b. False Indicate whether the statement is true or false