What is an externality?
What will be an ideal response?
An externality is a benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service.
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The use of purchasing power parity prices
A) decreases the real GDP per person statistics published by the International Monetary Fund. B) weakens the validity of cross country comparisons of economic welfare. C) increases the amount by which U.S. GDP is larger than that of any other nation. D) accounts for differences in the prices of the same goods in different countries when measuring real GDP.
Most businesses in the United States are ________, and the type of business organization that accounts for the LEAST amount of total revenues is ________
A) proprietorships; partnerships B) corporations; proprietorships C) proprietorships; proprietorships D) corporations; partnerships
Today, the world is not just experiencing more change or more rapid change, but qualitatively new conditions, particularly a dramatic loss in the ability of states to
a. protect their borders. b. maintain democratic governments. c. control economies. d. wage war.
The median-voter theorem suggests that:
A. voters tend to vote with a "mob-mentality," all voting the same. B. Politicians always receive more votes in general elections when they appeal to extremists in their party. C. the middle voter is generally influenced by the side they have more information on concerning an issue. D. politicians maximize their votes by taking the policy position preferred by the median voter, under certain conditions.