The productivity of the employees of a bakery is reduced because of the excessive noise coming from a next door car repair shop. This is an example of
A) synergy.
B) a positive externality.
C) a negative externality.
D) happy coexistence.
C
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A radio station is best described as
A) an end user in a transaction-based market. B) a platform in an audience-making market. C) an end user in a matchmaking market. D) a platform in a shared-input market.
Which of the following is the best measure of size of government as a share of the economy?
A) total government expenditures as a percentage of GDP B) the supply of money as a percentage of GDP C) public consumption plus private investment as a percentage of GDP D) private consumption as a percentage of Gross Domestic Product
Interdependence is the key characteristic of
A. monopolistic competition. B. monopoly. C. oligopoly. D. perfect competition.
Paying money in order to guarantee a certain level of compensation should an adverse event occur is
A. risk aversion. B. risk smoothing. C. risk pooling. D. risk rating.