It is true of externalities that they
a. arise when all costs, social and private, are included in production cost.
b. are always beneficial.
c. are always detrimental.
d. None of the above are correct.
d
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Which of the following would be part of the nation's current account?
A) An old house purchased by an American in Italy B) The purchase of a U.S. Treasury bond by a foreigner C) The interest an American earns on a British bond D) A factory built by the Japanese in the United States
Under a dirty float, the value of a country's currency is ________
A) fixed B) determined by the relevant currency board C) influenced by the monetary authorities D) unmanageable
If a government-imposed price ceiling causes the observed price in a market to be below the equilibrium price,
A) there will be excess demand. B) there will be excess supply. C) the curves will shift to make a new equilibrium at the regulated price. D) None of the above.
If Fred's annual real income rises by 8 percent each year, his annual real income will double in about:
A. 8-9 years. B. 10-11 years. C. 5-6 years. D. 19-20 years.