In a situation where an externality occurs, the "third party" refers to those who
A. are not directly involved in the transaction or activity.
B. buy the product from others.
C. produce the product for others.
D. trade the product with others outside the nation or community.
Answer: A
Economics
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Economic profit equals
A) accounting profit plus the cost of capital. B) accounting profit minus the cost of capital. C) accounting profit minus interest payments. D) accounting profit plus interest payments.
Economics
If the MPC equals 0.75, $100 billion tax increase will decrease consumption in the first round by
A. $400 billion. B. $75 billion. C. $300 billion. D. $100 billion.
Economics