Which of the following is an example of a negative externality?
a. A Japanese company exports cars to the U.S., 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 and burns her hand.
e. Jack attempts to fix his roof, falls off, and breaks his leg.
C
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The Fed's monetary policy tools
A) have proven to be of little value in helping the Fed to achieve its monetary policy goals. B) have allowed the Fed to achieve its monetary policy goals directly. C) have allowed the Fed to achieve its monetary policy goals indirectly. D) are no longer as effective in achieving its monetary policy goals, due to restrictive legislation passed by Congress in the 1990s.
Suppose Exxon-Mobil announces that its profits in the third quarter of 2013 were $40 billion. This will cause the price of Exxon-Mobil stock to
A) rise. B) fall. C) remain unchanged. D) rise, fall, or remain unchanged depending on the expectations of market participants before the announcement.
Data shows that countries that invest more and channel more of those investments into productive projects will generally have
a. higher rates of current consumption. b. higher future incomes. c. lower rates of economic growth. d. lower real interest rates.
The kinked demand curve is always associated with ___________ competition.
Fill in the blank(s) with the appropriate word(s).