Which of the following is an example of a positive externality?

A) something obtainable at a zero price
B) a lower crime rate for a community in which residents receive more education
C) increased purchases of landscaping services by a homeowner that boost a neighbor's property value
D) a discount for consumers buying in large quantity


Answer: B

Economics

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The self-correcting tendency of the economy means that rising inflation eventually eliminates:

A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.

Economics

"Moving along the AS curve, the real wage rate is constant while moving along the potential GDP line, the real wage rate changes." Explain whether the previous statement is correct or incorrect

What will be an ideal response?

Economics

With regard to preventing entry, if identical firms act simultaneously

A) they cannot credibly threaten each other. B) they will all incur losses. C) only one firm will enter the market. D) none of them will enter the market.

Economics

Theory A predicts that the higher the opportunity cost of having a child, the fewer children a woman will have. Which of the following is evidence against the theory if opportunity cost is measured in terms of foregone salary?

A) women with high-paying jobs have more children than women with low-paying jobs. B) women with low-paying jobs have more children than women with high-paying jobs. C) men married to women with high-paying jobs want more children than men married to women with low-paying jobs. D) the mothers of women with high-paying jobs will want their daughters to have children more than the mothers of women with low-paying jobs will want their daughters to have children. E) none of the above

Economics