Explain the difference between a negative production externality and a negative consumption externality
What will be an ideal response?
A negative production externality occurs when a firm produces a good and the cost of the good falls on parties other than the firm. A negative consumption externality occurs a person consumes a good and that consumption imposes a cost on others.
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Which of the following is TRUE regarding the Federal Open Market Committee (FOMC)?
A) It is the main policy-making group of the Congress. B) Representatives from each state control its operation. C) It meets about every six weeks to decide on monetary policy. D) Both answers A and C are correct.
In the game in Scenario 13.5,
A) there is one equilibrium: for both to expand West. B) there is one equilibrium: for both to expand South. C) there are two equilibria: either can expand in the West, and the other expands in the South. D) there is only a mixed strategies equilibrium. E) all four outcomes are equilibria.