An example of a negative externality is
A. a consumer paying too much for an item.
B. an apple orchard increasing the number of trees next to a bee farm.
C. pollution.
D. the Clean Air Act.
Answer: C
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Under perfect competition in the short run,
a. all firms will earn the same profit. b. more efficient firms can earn higher profits than less efficient firms. c. less efficient firms can earn higher profits than more efficient firms. d. less efficient firms will shut down.
Even though government-operated firms do not have to make a profit, they usually operate efficiently
Indicate whether the statement is true or false
Which of the following would make a player more inclined to continue into later stages of the Centipede Game rather than ending the game immediately? (Choose all that apply.) a. The subgame-perfect equilibrium is to continue as long as possible because the payoffs eventually get much larger. b. An increase in the chance that your rival has difficulty performing a long chain of deductions
c. An increase in the chance that your rival believes you have difficulty solving a long chain of deductions. d. Altruism toward one's rival.
Which of the following is true of International Banking Facilities (IBFs) in the U.S.?
a. IBFs were legalized by the Federal Reserve Board in 1970. b. IBFs are bookkeeping systems set up in existing bank offices of the U.S. to record international banking transactions c. IBFs are "shell" bank branches of U.S. banks in the Caribbean. d. Loans extended by the IBFs are subject to reserve requirements and interest rate regulations. e. IBFs are allowed to extend loans to the residents and businesses of the United States and not to the nonresidents.