An example of a situation in which the social costs are greater than the private costs would be
A) a new restaurant takes business away from an established restaurant.
B) hand-held calculators putting slide rule manufacturers out of business.
C) when a member of a rock band's ability to hear deteriorates from performing in so many loud concerts.
D) a physician who cannot examine patients with a stethoscope in an examination room adjacent to an airport.
Answer: D
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A decrease in wealth leads to a
A) downward movement along the supply of loanable funds curve. B) rightward shift of the demand for loanable funds curve. C) leftward shift of the demand for loanable funds curve. D) rightward shift of the supply of loanable funds curve. E) leftward shift of the supply of loanable funds curve.
The cost-output elasticity is used to measure:
A) economies of scope. B) economies of scale. C) the curvature in the fixed cost curve. D) steepness of the production function.