If an externality is created by a single person or firm, and affects only a single person or firm, then
a. it is referred to as a single externality
b. the inefficiency caused by that externality may be resolved by those two parties
c. the externality takes the form of a side payment
d. Pareto efficiency is guaranteed
e. fairness dictates that the externality be removed
B
Economics
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Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year
Indicate whether the statement is true or false
Economics
Mathematically the marginal rate of substitution is
A. always a positive number. B. is equal to 1. C. sometimes a positive and sometimes a negative number. D. always a negative number.
Economics