Which of the following is the best example of "creative destruction"?
a. The imprudent use of a credit card by a family that already has a high level of debt.
b. The virtual elimination of the film camera by the digital camera.
c. The failure of a business because of poor management.
d. The failure of a business because of higher cost resulting from government regulation.
B
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The economy of Budopia is going through a recession. How will a countercyclical policy affect the labor market in Budopia if wages are flexible? Explain with a diagram
What will be an ideal response?
Gross Domestic Product measures the
A) quantity of the goods and services produced in a given year, listed item by item, within a country. B) income of the business sector within a country. C) market value of the final goods and services produced in a given year within a country. D) measures the market value of the domestic labor in a given year within a country. E) market value of the final goods and services consumed by households in a given year within a country.
Wealth is the same as:
A. assets. B. capital gains. C. net worth. D. savings.
Keeping in mind the Coase theorem, in the figure above, if the residents of the town own the lake, how much do they charge the factories to dump waste?
A) $30 per ton of pesticide produced B) $40 per ton of pesticide produced C) $20 per ton of pesticide produced D) Nothing