Which of the following statements is not true?
a. If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
b. If marginal externality costs are not zero, externalities exist.
c. An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
d. The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
e. When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.
d
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If the dollar/pound exchange rate is $2/£, a Big Mac costs $5 in New York City and costs £4 in London, the pound is ________, and U.S. tourists will be ________
A) overvalued; better off in London B) overvalued; better off in New York C) undervalued; better off in London D) undervalued; better off in New York
The railroad expanded the size of our markets and therefore almost everything marketable, creating industries where none existed before. Joseph Schumpeter explained such an outcome as the result of
a. the upswing (or recovery) phase of a multi-investment cycle b. the upswing (or recovery) phase of an internal cycle c. the upswing (or recovery) phase of an innovation cycle d. an entrepreneurial revolution in U.S. industry e. the combination of immigration and capital deepening