Which of the following incurs a primarily pecuniary cost?
a. a factory’s smog obscuring the sunset
b. a defective product causing a fire that burns a house
c. noise from a warehouse making neighbors nervous
d. the smell from a dogfood factory permeating a neighborhood
b. a defective product causing a fire that burns a house
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An increase in the dollar price of the Mexican peso (an appreciation of the peso) would cause
a. Mexico's imports to increase and exports to decline. b. Mexico's exports to increase and imports to decline. c. both Mexico's imports and exports to decline. d. both Mexico's imports and exports to rise.
Proponents of tax-law changes to encourage saving would
a. argue that corporate tax rates should be decreased. b. increase the number of government benefits which are means-tested. c. argue that state sales tax should be replaced with state income tax. d. favor none of the above programs.
Fill in the blanks. Which of the following has been found by researchers in surveys of consumers? Most people consider it _________ for firms to raise their prices following an increase in costs ____________ to raise prices following an increase in demand.
a. fair; and fair b. fair; but unfair c. unfair; but fair d. unfair; and unfair
The real rate of interest is
A) equal to the nominal rate of interest less the anticipated rate of inflation. B) equal to the nominal rate of interest plus the anticipated rate of inflation. C) found by taking the nominal rate of interest and dividing it by the actual rate of inflation. D) found by taking the nominal rate of interest and adding the actual rate of inflation.