Which of the following constitutes an external cost of driving an automobile?

A) insurance
B) fuel
C) pollution
D) license


Answer: C

Economics

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The table above gives the domestic demand and supply schedules for a good. Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff. How much will the government collect as tariff revenue?

A) $160 B) $360 C) $320 D) $240 E) $80

Economics

What is the significance of the concepts "consumer surplus" and "producer surplus"?

What will be an ideal response?

Economics

A rise in government expenditure __________ the natural rate of interest

A) lowers B) raises C) has no effect on D) has an uncertain effect on

Economics

If investment increases by $100 and, as a result, gross domestic product (GDP) ultimately increases by $200, the multiplier equals _____

a. 1 b. 2 c. 3 d. 4 e. 5

Economics