Which of the following situations is clearly and unambiguously descriptive of a positive externality?
A. Jack feels better after his daily walk.
B. Joriel studies harder than anyone in his class.
C. Professor Gomez gave an unannounced quiz to her history class yesterday.
D. The President of the United States yesterday signed a legislative act that is very popular in the country.
E. none of the above
Answer: E
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Refer to Table 21.2. The bottom 20 percent of earners took home ________ of all income earned in Mysteria
A) 5% B) 8.33% C) 10% D) 29.4%
________ occurs when an individual has no incentive in paying for a good because failure to pay does not prevent consumption
A) A free-rider problem B) The paradox of thrift C) A tragedy of the commons D) The paradox of plenty
When economists talk about the gains from trade they mean that
A) no one ever gets hurt by trade. B) the benefits of trade outweigh the losses. C) business firms benefit from trade but not necessarily individuals. D) trade increases government revenue through taxes on imports. E) economic restructuring is usually quick and painless.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D2, then a profit-maximizing firm will produce ________ units and earn a profit of ________.
A. 13; $0 B. 13; $91 C. 15; $30 D. 7; $0