When a person does not have to pay the full costs for using a scarce resource, then there is
A) an underproduction of a good.
B) a negative externality.
C) a positive externality.
D) too little economic profit in the activity.
B
Economics
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Referring to the above figure, how much tax per unit has the government imposed?
A) cb B) db C) ab D) ca
Economics
Which of the following will increase the natural rate of interest?
A) An increase in the saving rate B) A decrease in inflationary expectations C) An increase in government spending D) A decrease in the money supply
Economics