If you burn garbage in your backyard and the smoke damages a neighbor's house, the damage is considered an externality.
Answer the following statement true (T) or false (F)
True
The externality is the cost of the house damage paid by the neighbor (third party).
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According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. The U.S. government is continually adding security features to its paper currency to help make counterfeit money easier to detect
If counterfeit currency remained undetected, a vast increase in the supply of counterfeit U.S. currency would A) lower the nominal income of the average U.S. worker. B) decrease aggregate demand in the short run. C) lead to inflation. D) reduce the amount of M1.
In the long-run equilibrium in monopolistic competition, price equals marginal cost
Indicate whether the statement is true or false
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure when it hires 100 coal miners?
A. $15,000 B. $20,000 C. $10,000 D. $1,000,000
A project is profitable when its internal rate of return is ______ the interest rate.
A. greater than B. less than C. equal to D. less variable