If firms have to account for external costs of production, then they will ________ compared with what they would do if they did not have to account for the external costs.
A. overproduce and underprice
B. underproduce and overprice
C. underproduce and underprice
D. overproduce and overprice
Answer: B
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You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. The CPI over that year rises from 180 to 200. What is the real interest rate you are paying?
A) 15% B) 5% C) -1.1% D) -6.1%
What is the difference between price discrimination and other forms of discrimination?
What will be an ideal response?
If there is initially a federal budget deficit, and taxes rise, while transfer payments fall:
a. AD increases and the budget deficit increases. b. AD increases and the budget deficit decreases. c. AD decreases and the budget deficit increases. d. AD decreases and the budget deficit decreases.
The percentage of total national income spent on health care in the United States has
A) declined rapidly since 1965. B) remained below the level of inflation. C) risen steadily since 1965. D) remained constant over the last few years.