An externality refers to the idea that
A. explicit costs differ from implicit costs.
B. decision-makers do not internalize all the costs.
C. private and internal costs differ.
D. we cannot do anything that does not affect other people.
Answer: B
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Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?
What will be an ideal response?
Which of the following caused pre-1984 volatility in residential construction?
A) financial regulations B) tax cuts C) currency volatility D) interest rates
Increasing returns to scale in production means
A) more than 10% as much of all inputs are required to increase output 10%. B) less than twice as much of all inputs are required to double output. C) more than twice as much of only one input is required to double output. D) isoquants must be linear.
Other things the same, when the price level falls, interest rates
a. rise, so firms increase investment. b. rise, so firms decrease investment. c. fall, so firms increase investment. d. fall, so firms decrease investment.