Externalities are unintended costs or benefits that are imposed on unsuspecting people and that result from:

a. poor planning.
b. intentional damages.
c. excessive costs.
d. excessive losses.
e. the economic activity of others.

e

Economics

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Empirical studies have shown that in most situations people are:

A) risk-averse. B) risk-neutral. C) risk-loving. D) either risk-neutral or risk-loving but not risk-averse.

Economics

The above figure shows the demand and cost curves facing a monopoly. At the profit-maximizing price, the elasticity of demand equals

A) -1. B) zero. C) infinity. D) -3.

Economics