A system of laws and courts generates positive externalities because
A) only governments are capable of creating such systems.
B) people cannot choose whether or not to obey the law.
C) people who disobey the law benefit from the existence and enforcement of rules applicable to all.
D) such a system could not exist without the approval of a majority.
C
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Suppose that in a particular market, the supply curve is highly elastic and the demand curve is highly inelastic. If a tax is imposed in this market, then the
a. buyers will bear a greater burden of the tax than the sellers. b. sellers will bear a greater burden of the tax than the buyers. c. buyers and sellers are likely to share the burden of the tax equally. d. buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.
An increase in supply is represented by a
a. movement downward and to the left along a supply curve. b. movement upward and to the right along a supply curve. c. rightward shift of a supply curve. d. leftward shift of a supply curve.