Identify the externality that arises when basic research leads to new general knowledge. Is the externality positive or negative?
Other people, besides the person(s) who engaged in the research, benefit from the new knowledge. A positive externality arises as a result.
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Governments often intervene in international trade and impose quotas to
A. shift a nation's production possibilities frontier. B. improve the performance of multinational corporations. C. increase revenues from export subsidies. D. protect domestic industries from foreign competition.
Define the following terms and explain their importance to the study of economics. a. common stock b. corporation c. limited liability d. plowback
What will be an ideal response?
During an inflationary period with full employment or near-full employment,
a. a progressive income tax structure will worsen inflation. b. unemployment taxes paid by workers will be low. c. total unemployment benefits will be maximized. d. lower disbursements for unemployment compensation will moderate inflation.
The marginal utility of the first smoothie that Jimmy drinks in the morning is worth $3.00. The marginal utility of the 4th smoothie he drinks is positive while the marginal utility of the 5th smoothie he drinks in the morning is worth $0. This implies that at a price of $0, Jimmy would drink
A. at most 5 smoothies per morning. B. an infinite number of smoothies each morning. C. more than 5 smoothies per morning, but the actual number is indeterminate from this information. D. zero smoothies per morning.