Which of the following statements about a well-maintained yard best conveys the general nature of the externality?
a. A well-maintained yard conveys a positive externality because it increases the home's market value.
b. A well-maintained yard conveys a negative externality because it increases the property tax liability of the owner.
c. A well-maintained yard conveys a positive externality because it increases the value of adjacent properties in the neighborhood.
d. A well-maintained yard cannot provide any type of externality.
c
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Induced expenditure is any expenditure that
A) is fixed for all price levels. B) is fixed for all levels of real GDP. C) changes when real GDP changes. D) changes when the interest rate changes. E) is fixed for all levels of the interest rate.
Traveler's check are
A) part of M1 only. B) part of M2 only. C) part of M1 and M2. D) not part of M1 or M2.
Suppose the equilibrium price and quantity of ketchup fall. The most likely explanation for these changes is:
A. a decrease in the demand for ketchup. B. an increase in the supply of ketchup. C. a decrease in the supply of ketchup. D. an increase in the demand for ketchup.
Suppose a publisher faces the following costs of producing 10,000 newspapers each month: $5,500 cost of labor; $2,200 monthly mortgage payment; $250 cost of electricity to run the printing presses; $800 for ink and paper; and $200 in city property taxes (based on the value of the building and land). Its total variable costs are:
A. $8,950. B. $8,750. C. $6,550. D. $6,300.