A market transaction causes an externality if someone
a. directly involved in the transaction receives uncompensated benefits or costs from it.
b. not directly involved in the transaction receives uncompensated benefits or costs from it.
c. directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out.
d. not directly involved in the transaction interferes in it by imposing regulations or product standards.
B
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Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a. college tuition rates b. farm subsidies c. national income d. automobile prices e. air traffic congestion f. economic recession
Suppose the supply curve for digital cameras shifts to the right. This will cause a relatively large decrease in the price of digital cameras if both demand and supply are inelastic
Indicate whether the statement is true or false