For a positive externality, _____________________ than the social benefits.

During a severe recession, the government issued food stamps that could only be used to acquire food to a greater number of families. The budget line graph shows food on the horizontal axis and everything else on the vertical axis. The government expects that issuing the food stamps will cause each family’s budget constraint line to:

In economic terms, when I’mASoftwareCo. invests in new technology innovations,

If pollutants are emitted into the air and water, what costs might be incurred as a result?

Market competition can provide _____________________ for _____________________,

A positive externality arises in a situation where a third party, outside the transaction,

The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.

A drug company is deciding how much to invest in Research and Development into finding a cure for diabetes. The table below shows the company’s demand for financial capital for R&D based on its expected rates of return from selling the cure. Every investment provides an additional 4% social return: that is, an investment that pays at least a 5% return to the drug company will create at least a 9% return for society as a whole. Estimated Rate of Return_____________________ Value of R&D Projects That Provide at Least This High a Private Rate of Return to the Drug Company (measured in millions of dollars) 10%     $2209%       $2288%       $2387%       $2506%       $2645%       $2804%       $2983%       $308 If the opportunity cost of financial capital for the drug company is 7%, the drug company will invest          in R&D if it receives only the private benefits of this investment.

If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is

If U.S. immigration consists of mainly low-skilled workers, then an increase in immigration_____________________ the wages of low-skilled workers.