If a person does not pay all costs associated with a particular resource-using activity, then
A) the external costs of the activity are greater than the private costs of the activity.
B) the social costs of the activity are greater than the private costs of the activity.
C) the external costs of the activity are greater than the internal costs of the activity.
D) the full costs of the activity are the sum of private costs plus internal costs.
B
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If you look at the financial page listings for futures contracts and find that futures prices on Treasury bonds are falling over a particular time period, futures market investors must expect that
A) Treasury bond prices will be higher in the future. B) Treasury bond yields will be higher in the future. C) Treasury bond yields will be lower in the future. D) futures prices will rise again at the end of the period.
Which of the following is the most likely response to a decrease in the U.S. real interest rate?
a. a U.S. company decides to expand its factory b. a U.S. citizen decides to purchase fewer foreign bonds c. a German mutual fund decides to increase its deposits at a U.S. bank d. All of the above are consistent.