If the aggregate supply curve is upward sloping, then an increase in autonomous consumption leads to a(n)
A. no change in aggregate demand and no change in the price level.
B. decrease in aggregate demand and a fall in the price level.
C. increase in aggregate demand and a rise in the price level.
D. decrease in aggregate demand and a rise in the price level.
Answer: C
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Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system. b. An externality is not an economic problem because it is external to the market. c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service. d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service. e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.
Marginal profit is the profit
a. earned by a firm that is about to go out of business. b. calculated directly from the total cost curve. c. that is added by a one-unit increase in total output. d. earned for each dollar of cost increase.
In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in
a. foreign portfolio investment. b. indirect domestic investment. c. foreign direct investment. d. foreign indirect investment.
How is the market demand curve for a public good derived?
What will be an ideal response?