If crop dusting on your farm causes your neighbors to have sore throats, then crop dusting is creating
A) only explicit costs.
B) opportunity costs.
C) external costs.
D) internal costs.
C
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Rent control is an example of
A) a price floor. B) a price ceiling. C) the rationing function of prices not working. D) the government increasing the demand for certain products.
The European Union started out as a
A) regional trade agreement. B) union of nations with identical currency. C) union of nations where the same language was spoken. D) union of nations with identical tariffs.
As the housing market took off in the early 2000s:
A. the growth in household debt accelerated. B. the growth in household debt slowed. C. household debt became positive for the first time since the Great Depression. D. household debt became negative for the first time since the Great Depression.
The demand curve for a perfectly competitive firm is
A. elastic at relatively high prices and inelastic at relatively low prices. B. perfectly inelastic. C. unitary elastic. D. perfectly elastic.