Explain the difference between a negative production externality and a negative consumption externality
What will be an ideal response?
A negative production externality occurs when a firm produces a good and the cost of the good falls on parties other than the firm. A negative consumption externality occurs a person consumes a good and that consumption imposes a cost on others.
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Explain what economists mean when they characterize the income tax system as progressive
What will be an ideal response?
Development economics must have a scope wider than traditional economics because
a. values and attitudes play little role in the pace of development. b. people in developing societies do less utility-maximizing. c. transformation of social institutions is necessary for development. d. all of the above.
Relative to the white median family income, since 1980 African-American median family income has ________ and Hispanic median family income has __________
a. increased; also increased b. fallen; also fallen c. increased; remained about the same d. fallen; increased
Labor market discrimination refers to
a. differing economic opportunities offered to persons according to their productivity. b. wage differentials based on productivity differences. c. differing economic opportunities based on personal characteristics. d. wage differentials based on seniority and human capital.