Which of the following does NOT contain an externality?
A) I sell you an ice cream and you drip it all over the person sitting next to you.
B) I sell you an ice cream and it gives you a headache.
C) I sell you an ice cream and you share it with your friend.
D) I give you an ice cream and you share it with a friend.
B
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Holding other things constant, if the Japanese Yen, depreciates, it makes the imports to Japan
a. More expensive for Japanese customer b. Less expensive for Japanese customers c. Neither more or less expensive for importers d. None of the above
To increase the money supply, the Fed might: a. increase the discount rate and sell bonds in the open market
b. decrease the reserve requirement and buy bonds in the open market. c. increase the reserve requirement and sell bonds in the open market. d. increase the discount rate and lower the reserve requirement. e. sell government securities and increase the discount rate.
Risk-benefit analysis of chemicals is difficult because
a. there is a void in formal assessments of health and ecological risks b. perception of risk of chemical exposure is not always aligned with actual risk c. the estimation of social benefits is particularly daunting d. U.S. policy on toxic chemicals is not as well established as it is for policy on air and water quality e. all of the above
Proponents of the view that the higher rate of productivity growth since 1996 is part of a long-run trend argue it is a result of
a. a continuing increase in the use of computers and other kinds of information technology. b. employers forcing more output from workers, who have become victims of new technologies. c. the shrinkage of the labor force, so that output per worker is rising. d. the rise of employment in the highly productive manufacturing sector.