Why do negative externalities like pollution result in inefficiency?
a. Because producers artificially restrict their supply.
b. Because producers ignore the external costs they impose on third-parties.
c. Because producers manufacture more goods than people can afford to buy.
d. Because producers will receive an unequal distribution of profits.
b
Economics
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In a bank panic, the source of contagion is the
A) free-rider problem. B) too-big-to-fail problem. C) transactions cost problem. D) asymmetric information problem.
Economics
The superstar effect is that
A) the supply of superstars is more elastic than that for average players. B) the labor market cannot create equilibrium wages for the best players. C) the demand for a few players is relatively greater than the demand for most other players. D) none of these choices.
Economics