Which of the following is a fixed cost?
a. electricity
b. worker bonuses
c. mortgage on the building
d. steel to produce refrigerators
c
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What does it mean for a producer to internalize an externality?
A) The producer is limiting outsourced production. B) The producer is prohibited from producing products which generate externalities. C) The producer must find ways to address externality problems which extend beyond geographic borders. D) The producer is forced to factor into production costs the cost of the externalities created in their production of output.
Under an assumption of monetary neutrality, a change in the nominal money supply has
A) no effect on the price level. B) a less than proportionate effect on the price level. C) a proportionate effect on the price level. D) a more than proportionate effect on the price level.
Both tariffs and quotas result in fewer imports being sold in a country
Indicate whether the statement is true or false
In the long run, the higher saving rate leads to a higher level of productivity and income but not to higher growth in these variables.
a. true b. false