An externality can best be defined as
A) a party not directly involved in a transaction.
B) a consequence of a transaction that spills over to affect third parties.
C) a right of an owner to use and exchange property.
D) a cost associated with the production of one more unit of output.
B
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Normative economics often takes a consequentialist philosophical approach to determine whether a policy is good. ?
Answer the following statement true (T) or false (F)
If the CPI was 108.4 in Year 1 and was 109.7 for Year 2, then the rate of Inflation between Year 1 and Year 2 was:
(a) 2.2%. (b) 1.9%. (c) 2.9%. (d) 1.2%.
After there has been a change in bank reserves, the multiplier process continues until:
A. required reserves are the same for all banks. B. banks start to extend new loans. C. the Fed runs out of government securities. D. each bank holds its desired reserve-to-deposit ratio.
Social Security tax is deducted from your paycheck. In the figure above this will be shown as
A) taxes flowing from households to governments. B) taxes flowing from firms to governments. C) taxes flowing from households to firms. D) wages flowing from firms to households. E) wages flowing from firms to governments.