Externalities can be internalized through voluntary agreements as long as
A. transaction costs are low relative to expected benefits.
B. transaction costs are high relative to expected benefits.
C. the agreement is a short-run agreement.
D. the agreement is a long-run agreement.
Answer: A
Economics
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When the selling price of a good rises (goes up), what is the relationship to the quantity supplied?
a. The profit made on each item goes down. b. It becomes practical to produce more goods. c. The cost of production goes down. d. There is no relationship between the two.
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The income that people receive is called:
a. national income. b. personal income. c. disposable personal income. d. transfer payments.
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