Suppose a large tree on Jack's property blocks Amy's view of the ocean. Jack accepts Amy's offer of $2,000 to cut down the tree. This is an example of
A) internalizing externalities via voluntary agreements.
B) a result of logrolling.
C) a consequence of a positive externality.
D) a consequence of private costs exceeding social costs.
Answer: A
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Because the price level shares a negative relationship with aggregate expenditures on GDP, the aggregate demand curve is:
A. downward sloping. B. upward sloping. C. perfectly elastic. D. perfectly inelastic.
If the purchasing power of the dollar is always the same at home and abroad, then the nominal exchange rate defined as units of foreign currency per dollar decreases if the U.S. price level rises more than the price level in foreign countries
a. True b. False Indicate whether the statement is true or false
An important element that is excluded from U.S. poverty figures is:
A. interest income. B. earned income. C. in-kind transfers such as food stamps and housing assistance. D. income tax.
In the market for euros, the supply of euros (€) is
A. upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans. B. downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans. C. downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans. D. upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans.