Which of the following is an example of an external benefit?
A. The federal government spends a million dollars on improving national parks.
B. A firm has just gotten permission to open a landfill on property that is adjacent to your home.
C. Firms are able to reduce their costs of production by using a more efficient technology.
D. More people start to ride the bus because they become more public?spirited and, as a result, air pollution is reduced.
Answer: D
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The employer is responsible for managing funds in an employee's defined contribution pension plan
Indicate whether the statement is true or false
Choices made by economic decision makers
a. are government decisions only b. are the primary focus of economics c. are not important in economic analysis d. occur infrequently e. do not involve ordinary citizens
A demand curve that shows the relationship between the price of a good and the amount of the good consumed holding the consumer's well-being fixed and allowing their to income vary is called:
A. an uncompensated demand curve. B. a compensated demand curve. C. a Marshallian demand curve. D. a derived demand curve.
The Lorenz curve maps:
A. GDP per capita against what people really earn by quintile. B. each quintile of the population in order of income-earned against the average income earned by those people. C. the cumulative percentage of the population against the cumulative percentage of income earned by those people. D. None of these describes what the Lorenz curve maps.