A negative externality exists when
A. a person's or group's actions cause a benefit that is felt by others.
B. a person's or group's actions cause a cost that is felt by others.
C. market output is less than socially optimal output.
D. a and c
E. b and c
Answer: B
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Refer to Table 28-3. What was Baltivia's unemployment rate in 2009?
A) 8.0% B) 12.7% C) 15.9% D) 22.1%
The real exchange rate generally has ________ relationship with aggregate expenditure.
A. a negative B. no C. a positive D. a constant
T-Shirt Enterprises is selling in a purely competitive market. Its output is 300 units, which sell for $1 each. At this level of output, marginal cost is $1 and average variable cost is $1.50. The firm should:
A. decrease output to 250 units. B. increase output to 350 units. C. produce zero units of output. D. continue to produce 300 units.
Price controls in Venezuela resulted in a thriving black market in many goods. The black market arose because the price controls that were implemented by the Venezuelan government were ________ which resulted in a ________ of products
A) price floors; surplus B) price floors; shortage C) price ceilings; surplus D) price ceilings; shortage