The cost or benefit of a market activity borne by a third party is
A. A monopoly.
B. An externality.
C. A government directive.
D. Black-market economic activity.
Answer: B
You might also like to view...
Checking deposits at banks are
A) money. B) not money because they are an intangible. C) money only because they are insured by the FDIC. D) not money until they are converted into currency.
If central banks were no longer obliged to intervene in currency markets to fix exchange rates, governments would be able to use monetary policy to reach
A) internal balance. B) external balance. C) internal and external balance. D) internal but not external balance. E) external but not internal balance.
Suppliers recognize there is a shortage in the market for their product when they notice that
a. the quantity supplied exceeds the quantity demanded. b. the quantity demanded is falling. c. inventories are falling. d. production exceeds new orders for the product. e. government economists announce a shortage exists.
Perfectly competitive industries are characterized by a homogeneous product.
Answer the following statement true (T) or false (F)