Refer to the figure above. The triangular region ABC represents the ________
A) deadweight loss due to the presence of a pecuniary externality
B) deadweight loss due to the presence of a negative externality
C) economic loss of not recognizing a positive externality
D) inefficiency created by not recognizing a negative externality
C
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The share of long-term unemployment:
A. increases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe. B. decreases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. C. increases with the amount of labor market rigidity, which explains why Europe has more long-term unemployment than the United States. D. decreases with the amount of labor market rigidity, which explains why the United States has more long-term unemployment than Europe
A ________ occurs when an economic activity has a spillover cost that does not affect those directly engaged in the activity
A) positive externality B) negative externality C) gain in producer surplus D) gain in consumer surplus