Which of the following is an example of detrimental externality?
a. A trailer's entry onto an overcrowded road that delays the movement of other vehicles.
b. Fall in demand for gasoline in the US softens the price of gasoline in the global market.
c. Government investment in energy generation from non-conventional sources.
d. Society devotes huge quantity of its scarce resources for vital innovative activity.
a
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Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation
What will be an ideal response?
If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?
A) Supply increased. B) Demand decreased. C) Demand increased. D) Supply decreased.
Firms in monopolistically competitive markets spend significant sums on product differentiation because:
a. it enables them to earn positive profits in the short run. b. it increases the elasticity of demand for a firm's product. c. it reduces the number of competitors. d. it causes the firm's supply curve to become horizontal so the firm can expand output indefinitely. e. it causes the firm's demand curve to become horizontal so that it can charge a fixed price for its product.
Refer to the information provided in Table 23.3 below to answer the question(s) that follow. Table 23.3
Refer to Table 23.3. Society's MPS is
A. 0.2. B. 0.25. C. 0.7. D. 0.8.