Author Question: Whether an externality is positive or negative, it is always A) evaluated by the Supreme Court of ... (Read 176 times)

neverstopbelieb · **on:** Jun 29, 2018

Whether an externality is positive or negative, it is always

A) evaluated by the Supreme Court of the United States.
B) evaluated by the government.
C) evaluated by the impact on the third party.
D) judged by the profitability of the firm producing the product.

Question 2

The president of the United States promises that the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?

A) if the United States were producing at a point on its production possibilities curve
B) if the United States were producing inside its production possibilities curve
C) if the United States were producing to the right of its production possibilities curve
D) None of the above; the production possibilities curve must shift to the right.