Which of the following would result in a positive externality?
A) A local government establishes a price ceiling on rental apartments.
B) An electric utility burns coal that causes acid rain.
C) Medical research results in a cure for malaria.
D) McDonald's eliminates all salads from its menu.
Answer: C
Economics
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Social Security tax is deducted from your paycheck. In the figure above this will be shown as
A) taxes flowing from households to governments. B) taxes flowing from firms to governments. C) taxes flowing from households to firms. D) wages flowing from firms to households. E) wages flowing from firms to governments.
Economics
If a firm's average cost is currently $100, and the marginal cost is $95, then the average cost is currently falling
a. True b. False Indicate whether the statement is true or false
Economics