Jack wants to buy a new house. But the surge in housing demand over the last few months has led to a sharp increase in housing prices making it impossible for him to afford one on his current income. This is an example of a ________
A) positive externality
B) negative externality
C) pecuniary externality
D) conspicuous externality
C
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The economy is undergoing a recession that has reduced consumers' incomes. In the computer chip market, this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
Refer to the above figure. The wage rate under perfect competition is
A) W2. B) W3. C) W4. D) W5.
For an economy as a whole, income must exceed expenditure
a. True b. False Indicate whether the statement is true or false
In general, we could say that
A. liberal economists favor a larger economic role for government and conservatives favor a smaller role. B. conservative economists favor a larger economic role for government and liberals favor a smaller role. C. both liberals and conservatives favor a larger economic role for government. D. liberals and conservatives favor a smaller economic role for government.