A positive externality results when
A) economists are sure that a good or service provides benefits to consumers.
B) someone pays for a good or service even though she is not directly affected by the production or consumption of it.
C) people who live in one country benefit from the production of a good or service that occurs in another country.
D) people who are not directly involved in producing or paying for a good or service benefit from it.
D
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Who benefits from the process of financial intermediation?
A) borrowers only B) There is no benefit, because money does not create wealth. C) savers only D) both savers and borrowers
If the relative price of pizza in terms of movies is 3, this means that
A) the opportunity cost of a pizza is 3 movies. B) 3 pizzas can be traded for 9 movies. C) in terms of the dollars that must be spent to buy the product, pizza is more expensive than movies. D) All of the above answers are correct.
In high-inflation countries, workers prefer to spend their income faster compared to low-inflation countries
a. True b. False Indicate whether the statement is true or false
A monopoly
a. can increase the price and increase output at the same time b. can charge any price it wants and still sell all of its output c. can sell any output it produces provided it accepts the market price d. must lower the price in order to increase output e. faces a perfectly elastic demand curve