An externality is any activity for which an individual firm or consumer does not take into account all
A) of the ramifications of its actions on others.
B) associated costs.
C) associated benefits.
D) associated costs and benefits.
D
You might also like to view...
The above table gives real GDP and the aggregate expenditure schedule. When real GDP is $10 billion, the amount of unplanned investment is
A) $0.5 billion. B) -$20.5 billion. C) -$0.5 billion. D) $20.5 billion. E) unknown.
Define the terms "economies of scale," "constant returns to scale," and "diseconomies of scale." Among these three situations, operating in which stage is likely to be most profitable for a firm?
What will be an ideal response?
Which of the following will increase the demand for large automobiles?
a. A fall in the price of small automobiles. b. A rise in insurance rates for large automobiles. c. A fall in the price of large automobiles. d. A rise in buyers' incomes (assuming large automobiles to be a normal good).
The Keynesian model provided an explanation for
a. the prolonged unemployment of the 1930s. b. the double-digit inflation rates of the 1970s. c. the high unemployment rates of the 1970s. d. the high inflation rates of the 1930s.