Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement:
A. an externality.
B. welfare loss.
C. excess burden.
D. Pareto optimality.
Answer: A
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The Doing Business As name identifies a company for:
a. Bank accounts b. Sales c. Patents d. None of these
Refer to the accompanying figure. At point D, the opportunity cost of making milk is:
A. high because productive resources that are better-suited to making movies are being used to make milk. B. low because the economy is specializing in making milk. C. high because productive resources that are better-suited to making movies are not being used to make milk. D. high because the economy is not operating efficiently.
"Classical economist" is often used interchangeably with which term?
A. Marxian economist B. Activist economist C. Laissez-faire economist D. Keynesian economist
All of the following are factors that raise economic development EXCEPT
A. establishing a legal system. B. government control of the country's resources. C. an educated work force. D. reducing trade barriers.