An individual who pays for a vehicle has incurred a
A) social cost.
B) private cost.
C) negative externality.
D) positive externality.
Answer: B
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Historically, the largest U.S. federal budget deficits as a percentage of GDP since the beginning of the 20th century occurred during
A) the Great Depression. B) World War I and World War II. C) 1970-1997. D) 2007-2009.
By almost every measure of social and economic well-being, for how long after the Civil War (1861–1865) did the South lag behind the rest of the country?
(a) For almost a century (b) For almost a decade before it adapted to life without slavery (c) For only two decades (d) Right down to the present day
The short-run aggregate supply curve is horizontal when
A) prices are inflexible and the economy is at full employment. B) there are unemployed resources and prices do not increase when aggregate demand increases. C) there are unemployed resources and prices do not decrease when aggregate supply increases. D) there are no unemployed resources and prices do not increase when aggregate demand or supply increases.
In the "non-market-clearing model" the level of final goods sales and unemployment during a recession are
A) the result of interactions between supply and demand. B) higher than would be the case in a market clearing model. C) caused by the rapid adjustment of prices and wages. D) the result of wage and price rigidities.