An externality is present in a free market whenever:
A. an activity generates costs or benefits that are not reflected in market prices.
B. a monopolist spends funds to keep potential competitors out of the market.
C. a tax is imposed on the supplier of a good.
D. firms hire employees from outside the firm to fill positions normally filled by promotion from within the firm.
Answer: A
Economics
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The real interest rate is equal to the nominal interest rate minus:
A. accounting profit. B. economic profit. C. taxes. D. the inflation rate.
Economics
A change in the ceteris paribus conditions for supply will lead to a
A) change in quantity supplied. B) change in supply. C) change in quantity supplied and a change in supply. D) change in how consumers view the quality of the good.
Economics