Which of the following statements is correct?
A. Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity.
B. Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity.
C. Marginal social cost is the sum of marginal private cost and incidental cost.
D. Marginal private cost and incidental cost are one and the same.
Answer: C
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Which of the following is an example of a trade restriction?
A) Consumers prefer German beer to domestic beer. B) Japan places a tax on all Korean automobiles. C) Domestic wine is more expensive than wine imported from Chile. D) The United States, Canada, and Mexico sign the NAFTA agreement.
The principle benefit of tariff protection goes to
A) domestic consumers of the good produced. B) foreign consumers of the good produced. C) domestic producers of the good produced. D) foreign producers of the good produced. E) the domestic government.
The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:
a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment.
A consumer will consume the combination of goods at the point of tangency between the budget line and the indifference curve
a. True b. False Indicate whether the statement is true or false