Which of the following is an example of an external benefit?
A. More people start to ride the bus because they become more public?spirited and, as a result, air pollution is reduced.
B. A firm has just gotten permission to open a landfill on property that is adjacent to your home.
C. The federal government spends a million dollars on improving national parks.
D. Firms are able to reduce their costs of production by using a more efficient technology.
Answer: A
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Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies of scale.
An essentially classical feature in the supply-side perception of the saving-investment process is an emphasis on
a. income and, therefore, on aggregate demand. b. the importance of rates of return as influences on the rates of saving, investment, and thus capital formation. c. the inflation rate. d. money neutrality e. both b and d.
A demand curve is described as perfectly inelastic if
a. the same quantity is purchased regardless of price. b. the same price is charged regardless of quantity sold. c. neither price nor quantity demanded ever change. d. only quantity demanded can change.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. The firm is currently along isocost CD. If the price of capital is $10, then the price of labor is
A. $10. B. $20. C. $80. D. indeterminate from this information.