What are the private costs of driving an automobile? What are the external costs?
What will be an ideal response?
The private costs include gas, maintenance, repair, depreciation, and insurance. External costs include the costs associated with air pollution, which include costs to clean cars and paint houses more often, increased health care costs, and the disutility of the air pollution.
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Which of the following fiscal programs is least likely to affect aggregate demand?
a. Defense spending b. Road construction c. Grants for scientific research and development d. Social Security for women e. Government purchases of labor
In economics, the term investment refers to:
a. the cost of employing human capital. b. expenditure on expense accounts of employees. c. firms' expenditure on salaries and rent. d. business spending for acquiring capital goods. e. the expenses on the purchase of stocks of a corporation.
If a college education did not increase worker productivity,
a. no one would go to college. b. the earnings of workers with a college education would tend to be the same as for workers without a college degree. c. the earnings of workers with a college education would still be higher than for those without a college degree. d. the earnings of workers with a college education would be lower than for those without a college degree.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W0 and the firm is initially at Point A. Labor supply decreases from S0 to S1. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.
A. B B. C C. E D. F