Students arriving late to class are a potential negative externality because their tardiness may interrupt the instructor and distract students
Can you think of any way in which this externality could be curbed? That is, can you think of any methods that could be employedto internalize this negative externality?
There are many possible answers to this question. One method might be for the instructor to announce in advance that students will be docked a certain number of points from their grade for each incidence of tardiness.
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Under a fixed exchange standard, if the domestic demand for foreign exchange increases
A) the central monetary authority must meet the demand out of its reserves. B) the central monetary authority must increase the supply of domestic money. C) the fixed exchange standard will breakdown. D) inflation will increase. E) the domestic currency must be depreciated.
(Consider This) The prisoner's dilemma reveals that:
A. collusive agreements will always fail. B. the price leadership model does not work. C. nonprice competition is more profitable than price competition. D. sometimes when individuals act independently in their own self-interest, everyone is worse off than if they had cooperated.