Which of the following is an example of a negative externality?
A. A Japanese company begins to produce cars, which causes American workers to lose their jobs.
B. An employee of a chemical company spills acid on his arm, causing severe damage.
C. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary.
D. Sally buys coffee at McDonald's, spills some on her, and burns her arm.
Answer: C
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In order to be able to price discriminate and maximize profit, a monopolist must be able to do all of the following EXCEPT
A) identify and separate different buyer types. B) sell a product that cannot be resold. C) identify competitors. D) determine the output where marginal revenue equals marginal cost.
If the economy is experiencing an economic boom, which point in the graph shown would likely represent this?
A. E1
B. E2
C. E3
D. E4
Suppose that the U.S. can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude
a. the U.S. has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the U.S. has a absolute advantage in the production of wine. d. all of the above are conclusions are correct.
Table 6.4: Population and Employment in Nationland?199920002001Working Age Population100110125Employed657080Unemployed51020Discouraged Workers235*all numbers are in millionsIf discouraged workers were included in the labor force, what would the unemployment rate be for 1999?
A. 10.8 percent. B. 2.8 percent. C. 9.7 percent. D. 3.0 percent.