When both internal and external costs for using a scarce resource are included, then there is
A) an increase in the production of the good.
B) a negative externality.
C) an increase in the price of the good.
D) a positive externality.
C
You might also like to view...
Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a surplus of 1.2 million workers in the labor market. b. There is a surplus of 400 thousand workers in the labor market. c. There is a shortage of 400 thousand workers in the labor market. d. There is a shortage of 800 thousand workers in the labor market.
To decide what is meant by enlightened self-interest, behavioral economists will:
A. make their models more mathematically rigorous. B. use the ceteris paribus assumption repeatedly. C. base their models on induction. D. use laboratory and field experiments.