Answer the following questions true (T) or false (F)
1. An externality is an example of a market failure.
2. When products that create positive externalities are produced, at the market equilibrium output, the social benefit generated by consuming the product exceeds the private benefit.
3. An external benefit is created when you pursue a college education.
1. TRUE
2. TRUE
3. TRUE
Economics
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How is economic growth shown in a production possibilities frontier graph?
What will be an ideal response?
Economics
The First Fundamental Theorem of Welfare Economics requires
A. producers and consumers to be price takers. B. that there be a market for every commodity. C. that the economy operate at some point on the utility possibility curve. D. all of these answer options are correct.
Economics