Over-harvesting of fish in international waters an example of what economic concept?
a. a production externality
b. a consumption externality
c. marginal social benefits exceeding marginal private benefits
d. private marginal costs exceeding marginal social costs
Ans: b. a consumption externality
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An advantage of the establishment survey over the household survey of the labor market is that the establishment survey
A) includes the number of self-employed persons. B) provides an estimate of the number of persons unemployed. C) is based on actual payrolls, rather than on unverified answers. D) includes persons employed at newly opened firms.
In the rational expectations model
a. markets are perfectly competitive and in equilibrium. b. markets may not clear even if wages and prices are otherwise perfectly flexible. c. markets may temporarily be in disequilibrium. d. only anticipated changes in aggregate demand affect output.
What are economies of scale?
a. decreasing average costs as production increases b. increasing average costs as production increases c. increasing fixed costs as production increases d. none of the above
The invention of parity price ratios was designed to protect farmers' purchasing power. Over the years, these parity price ratios have
a. been fixed at 100 percent b. increased to approximately 125 percent of their initial value set in 1910–1914 c. been increasing at approximately 25 percent per year d. been falling and are less than 50 percent of the 1910–1914 ratio e. been volatile, increasing and decreasing sometimes dramatically, but still averaging approximately 100 percent of 1910–1914 levels, which was the long-run target