Externalities are effects of a transaction on
A. the sellers but not the buyers.
B. the buyers but not the sellers.
C. someone other than the buyer or seller.
D. the buyers and sellers.
Answer: C
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The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in
A) total factor productivity. B) the capital stock. C) the labor force. D) both the capital stock and the labor force.
Economists use the phrase "business cycle" when referring to fluctuations in:
a. real GDP. b. the chain price index. c. the consumer price index. d. the general level of prices.
In recent years the Federal Open Market Committee has focused on a target for
a. M1 growth. b. the federal funds rate. c. the number of Treasury Securities issued by the federal government. d. total reserves of banks.
A key difference between import quotas and voluntary export restrictions (VERs) is that
A. the former requires cooperation from a foreign government or foreign producers, whereas the domestic government may unilaterally enact the latter. B. one raises the price of the imported product involved, whereas the other does not. C. the domestic government may unilaterally enact the former, whereas the latter requires cooperation from a foreign government or foreign producers. D. one is a tax, whereas the other is a quantity limit.