Which of the following would be an external cost to the consumption of cigarettes?
a. Price of a pack of cigarettes.
b. Loss of income resulting from extra missed days of work.
c. Higher life insurance premiums due the practice of smoking.
d. The loss in utility received because the smoker must stand outside her office building in the winter to smoke.
e. Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.
e
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The single most important factor in the 1992 crisis of the EMS was
A) ratification of the Single European Act. B) the near failure of the Maastricht Treaty. C) the fall in unemployment rates throughout the EEC. D) German reunification efforts. E) the outbreak of war in the former Yugoslavia.
An increase in the amount of resources would shift the long-run aggregate supply curve:
A) rightward. B) leftward. C) no shift. D) none of the above.
The derived demand curve for a good component will be more inelastic
A) the larger is the fraction of total cost going to this component. B) the more inelastic is the demand curve for the final good. C) the more elastic are the supply curves of cooperating factors. D) the less essential is the component in question.
If the economy has an inflationary GDP gap, one possible solution is to increase government expenditures.
Answer the following statement true (T) or false (F)