Which of the following is an example of positive externalities?
A. You allow weeds to grow on your yard.
B. Your neighbor's barbecue smoke comes through your window.
C. Your neighbor always listens to music at an unbearable volume.
D. Your neighbor's garden is always well taken care of.
Answer: D
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For a perfectly competitive corn grower in Nebraska, the marginal revenue curve is
A) downward sloping. B) the same as its demand curve. C) upward sloping. D) U-shaped. E) vertical at the profit maximizing quantity of production.
Economic theory assumes elected representatives in government vote
A) in the public interest. B) without any interest. C) in their own interest. D) in complete harmony with the interests of the majority of citizen-voters.
Consider an apple orchard owner deciding how to incentivize his fruit pickers. He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons. As a consequence
a. The compensation rate should be fixed at all times b. The pickers might try to game the system by discouraging others from harvesting too much c. The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons d. None of the above
If the Fed pursues a contractionary monetary policy on the open market, which of the following would be the most likely result?
a. appreciation of the dollar b. increase in exports c. decrease in imports d. lower interest rates