An example of the external costs due to automobile driving is
A. the opportunity cost of the driver's time.
B. the cost of washing dirty cars.
C. wear and tear on toll roads.
D. air pollution due to exhaust fumes.
Answer: D
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Many firms have implicit and explicit costs. The difference between them is that implicit costs
a. are taken into consideration for tax purposes while explicit costs are not b. are the same as explicit costs but are internalized within the firm, such as hiring labor c. are part of accounting costs while explicit costs are not d. represent actual money payments to factors of production while explicit costs do not e. although not involving money payments are the opportunity costs of resources used by the firm
The EPA’s Endangerment finding
a. had no effect on GHG regulation in the United States b. asserted that GHGs posed a threat to the health and welfare of current and future generations c. argued that GHGs present no danger to public health and welfare d. indicated that only HFCs could endanger public welfare and recommended that they be banned from production and consumption
According to the quantity theory of money, nominal GDP will double if the money supply is
A. reduced threefold. B. reduced by one-half. C. tripled. D. doubled.
Strawberries are produced in a perfectly competitive market. Average consumer incomes decrease. This will cause the individual strawberry farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease