Human effort that can be applied in the production process is called:

Which of the following will lead to an efficient private solution if negative externalities are present in a market?

A) The party having the legal right is taxed. B) The party creating the externality has the legal property right. C) The party suffering from the externality has the legal property right. D) The parties involved negotiate with each other and reach an agreement.

An example of business fixed investment spending is

A) a purchase of a home by a household. B) a purchase of a bond by General Electric Corporation. C) a purchase of a computer by an accounting firm. D) $200 million of unsold cars at a car dealership.