An example of a positive externality is
A. an apple orchard increasing the number of trees next to a bee farm.
B. pollution.
C. the Clean Air Act.
D. smoking in a crowded place.
Answer: A
Economics
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A subsidy payment, even if paid entirely to the seller, will impact the price, supply of, and quantity demanded of a good
a. True b. False Indicate whether the statement is true or false
Economics
A perfectly competitive firm cannot earn an economic profit in the long run because
A. there are no barriers to entry into the industry. B. it faces a perfectly inelastic demand curve. C. it is a "price-maker." D. all firms in the industry earn accounting profits.
Economics