Which of the following is true of an externality?
a. An externality enhances the efficiency of the market system.
b. An externality is not an economic problem because it is external to the market.
c. An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service.
d. An externality accrues to someone who had nothing to do with the production or consumption of a good or service.
e. An externality refers to some unexpected change in the equilibrium price or quantity of a product.
d
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In the figure above, with the tariff American consumers ________ million shirts per year
A) 40 B) 48 C) 32 D) 16
In the money market, an excess demand of money will:
A) increase the supply of bonds, increase bond prices, and decrease interest rates. B) increase the supply of bonds, decrease bond prices, and decrease interest rates. C) increase the supply of bonds, increase bonds prices, and increase interest rates. D) increase the supply of bonds, decrease bond prices, and increase interest rates.
Billie Jo values a stainless steel dishwasher for her new house at $500, but she succeeds in buying one for $425 . Billie Jo's willingness to pay for the dishwasher is
a. $150. b. $425. c. $500. d. $850.
Suppose you are deciding how much oil to pump from your oil well in the next two years. Other things equal, you will be more likely to pump more oil this year than next year if you expect
A. a lower price for oil this year than next year. B. a higher price for oil this year than next year. C. less demand for oil next year than this year. D. the same price of oil this year than next year.