Mary plants a number of trees in her garden every week, which keeps her neighborhood cool. Which of the following is true?
A) The marginal social cost of planting a tree is lower than the marginal private cost of planting a tree.
B) The marginal private benefit of planting a tree is higher than the marginal social benefit of planting a tree.
C) There is an external benefit in planting a tree.
D) There is a deadweight loss in planting trees.
C
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Use a figure to explain how a balance of payments crisis and its hand in capital flight
What will be an ideal response?
Which of the following is not consistent with a self-correcting economy?
a. Falling wages that correct a recessionary gap b. Falling prices that correct a recessionary gap c. Rising prices that correct an expansionary gap d. Tendency of the short-run aggregate supply to shift until it intersects aggregate demand at potential GDP e. An active approach to a recession or depression
If the foreign income decrease, then we might expect net export spending to:
A. increase. B. decrease. C. remain constant. D. there is not enough information to determine what would happen.
Consumer spending is an injection in the circular flow of income and spending.
Answer the following statement true (T) or false (F)