Which of the following purported externalities in fact does not distort the allocation of resources? I. An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood. II. Smoke produced by a new firm in an area which raises the costs of other firms. III. A new firm's bidding up skilled wages in an area, thereby raising costs of other firms. IV. An
individual's unwillingness to obtain job training, thereby lowering the total GNP. Possible choices:
a. I, III, and IV.
b. III and IV.
c. III only.
d. IV only.
b
Economics
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Generally speaking, as more of a particular good is purchased, a consumer's marginal utility ____ and total utility ____
a. increases; decreases b. decreases; increases c. increases; increases d. decreases; decreases e. generalizations cannot be made
Economics
The four-firm concentration ratio is calculated by adding the _____________ of the four largest firms in the industry.
a. profits b. total earnings c. market shares d. costs of wages
Economics