Which of the following "externalities" does not distort the allocation of resources? I. An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood. II. Smoke produced by a new firm in an area that raises the costs of other firms. III. A new firm's bidding up skilled wages in an area, thus raising costs of other firms. IV. An individual's unwillingness
to obtain job training, thereby lowering the total GNP.
a. I, III, and IV.
b. III and IV.
c. III only.
d. IV only.
b
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The current account records foreign investment in the United States minus U.S. investment abroad
Indicate whether the statement is true or false
What is the future value of $1 (i) after 18 years if the interest rate is 4 percent, (ii) after 12 years if the interest rate is 6 percent, (iii) after 9 years if the interest rate is 8 percent, and (iv) after 6 years if the interest rate is 12
percent?
It is impossible to export or import services.
Answer the following statement true (T) or false (F)
Which of the following would cause the demand curve for automobile workers to increase?
A. Higher gas prices. B. A decrease in price in automobiles. C. A better organized assembly line where specialization increased output. D. Higher social security taxes.