A large farm uses fertilizer that nearby landowners complain may contaminate their water. Tests are conducted and contaminants are found. The costs resulting from this decision are referred to as
A) implicit costs.
B) factor costs.
C) external costs.
D) opportunity costs.
C
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Market systems are often referred to as "automatic" or "self-regulating" because they function
A) effectively even when no participant in the system plans ahead. B) effectively in the absence of any laws. C) effectively even when the society is breaking down. D) without an overall, comprehensive plan. E) without the intervention of human beings.
There is currently a resurgence in Keynesian macroeconomics, based on the assumptions of market ________ and ________ expectations
A) non-clearing, adaptive B) non-clearing, rational C) clearing, adaptive D) clearing, rational
Which of the following is true? a. At the natural rate of unemployment, the economy is considered to be at full employment
b. At full employment, the economy is producing at its potential output. c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output. d. All of the above are true.
Give an example of how the profits change from the short run to the long run for a firm in a perfectly competitive market.
What will be an ideal response?