If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be:
A. left alone under the idea of laissez faire.
B. subsidized.
C. taxed.
D. prohibited.
Answer: B
Economics
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When you invest in a mutual fund
(A) Your money is invested in a variety of insurance policies. (B) You are guaranteed a fixed return on your investment. (C) Your money is invested in a variety of stocks and bonds. (D) You have easier access to your money than in a savings account.
Economics
In order to enjoy a rising standard of living standard, a nation's capital stock must grow faster than
a. the rate of depreciation b. the rate of inflation c. its population d. its financial assets e. its overall rate of economic growth
Economics