One of the external costs associated with illegal methamphetamine production is the
A. increased difficulty illegal methamphetamine producers face in obtaining their ingredients.
B. increased difficulty of purchasing some over-the-counter cold medications.
C. increased difficulty of purchasing some over-the-counter cold medications as well as a substitution of somewhat less effective ingredients in some over-the-counter cold medications.
D. substitution of somewhat less effective ingredients in some over-the-counter cold medications.
Answer: C
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In a business cycle recession, which of the following occurs?
A) The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve. B) Investment demand increases and the demand for loanable funds curve shifts rightward. C) Investment demand decreases and the demand for loanable funds curve shifts leftward. D) The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve. E) The quantity of investment demanded decreases increases and there is a movement up along the demand for loanable funds curve but no shift in the curve.
A decrease in the price of ice cream is likely to cause:
A. an increase in the demand for ice cream cones due to a change in the price of a complementary good. B. an increase in the demand for ice cream cones due to a change in the price of a substitute good. C. an increase in the demand for ice cream cones due to a change in the preferences of consumers. D. a decrease in the demand for ice cream cones due to a change in the price of a related good.
Congress and the President implement an investment tax credit. Which curve in the market for loanable funds shifts, which direction does it shift, and what happens to the interest rate?
If equilibrium GDP is greater than full employment GDP there is
A. an inflationary gap. B. a recessionary gap. C. both an inflationary gap and a recessionary gap. D. neither an inflationary gap nor a recessionary gap.