Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system.
b. An externality is not an economic problem because it is external to the market.
c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service.
d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service.
e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.
d
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Which of the two features of the IMF Articles of Agreement helped promote flexibility in external adjustment?
A) IMF members helped countries maintain full employment. B) IMF allowed countries to attain internal balance. C) New countries would enter the agreement if they fixed their exchange rate. D) IMF members contributed their currency to form a pool of resources that IMF could lend to countries in need and parities in the exchange rate against the dollar could be adjusted with agreement of IMF. E) IMF members argued against the use of floating exchange rates.
A monopolistically competitive firm, like a perfectly competitive firm, is a price taker
a. True b. False Indicate whether the statement is true or false