A beekeeper decides to locate her business on a plot of land that lies between an apple orchard and an elementary school. Which of the following is a positive externality that can result from the business?
a. The cost of the beehives to the beekeeper
b. The possibility of the bees stinging the students at the school
c. The bees helping to pollinate the orchard, leading to more fruit production
d. The honey that is produced by the bees
c
You might also like to view...
A call option is a contract
A. that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
The Clayton Act of 1914:
a. was too vaguely worded to reduce anticompetitive behavior significantly b. prohibited conspiracies in restraint of trade c. prohibited price discrimination that reduces competition and cannot be justified based on cost differences d. created the Federal Trade Commission
What is a common source of leakage in the money creation process?
a. borrowers who deposit their loan money into a demand deposit account b. banks that choose not lend all their excess reserves c. banks that rapidly make new loans when additional funds are deposited d. borrowers who choose to spend the full amount of their loans
The nominal rate of interest is 4% and the anticipated rate of inflation is 5%. What is the real rate of interest?
A. 9% B. -1% C. 4% D. 1%