Why can't private individuals always internalize an externality without the help of government?
a. Legal restrictions prevent side payments between individuals.
b. Transactions costs may be too high.
c. Side payments between individuals are inefficient.
d. Side payments between individuals are insufficient.
b
Economics
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Which of the following would not appear in the investing activities of the statement of cash flows?
A. Sale of investments B. Purchase of land C. Purchase of inventory D. All of the above would appear in the investing section of the statement of cash flows
Economics
Consider GDP calculated according to the expenditures approach. Which of the following components of GDP would need to decrease for GDP to increase?
a. Imports b. Consumption c. Exports d. Investment e. Government spending
Economics