Positive Externalities Arise When

question 320

Multiple Choice

Positive externalities arise when

• A) an unprofitable firm is shut down.
• B) a profitable firm is regulated.
• C) tax rates are reduced.
• D) production of a good generates benefits that spill over to third parties.

Understand the relationship between interest rates and the present value of future payments.

Understand the concepts of the inflationary premium and real versus nominal interest rates.

Understand the effects of real interest rate changes on investment and consumption decisions.

Understand the concept of interest and different perspectives surrounding it.

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Definitions:

Establish Monopolies

The process or outcome of a single company gaining exclusive control over a commodity or service, often viewed negatively due to the potential for abuse of power.

Sweatshops

Workplaces, often in the manufacturing sector, that have poor working conditions, unfair wages, unreasonable hours, and may involve child labor.

Dodd-Frank Act

Formally known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, a comprehensive piece of financial reform legislation passed in 2010, aimed at reducing risks in the U.S. financial system.