If the market price of a good does NOT include all of the costs and benefits that arise from the production or consumption of the good, then
A) the market is perfectly competitive.
B) an externality is present.
C) society is consuming and producing the optimal amount of the good.
D) resources are properly allocated.
B
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Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
A) $10,000 B) $22,000 C) $32,000 D) $42,000
Which of the following is correct?
a. Monetarists believe there is no short-term link between changes in a nation's money supply and changes in expenditures. b. Monetarists believe there is an indirect link between changes in a nation's money supply and changes in expenditures. c. Monetarists believe there is a direct link between changes in a nation's money supply and changes in expenditures. d. Keynesians believe there is a direct link between changes in a nation's money supply and changes in expenditures. e. None of the above.
List and briefly explain each of the four properties of indifference curves
An agreement that gives one party the right to buy or sell from or to •- another party a specified quantity of currency at a specified price would be included in which of the following transactions?
a. an option b. a futures contract c. a forward contract d. a swap