Which of the following is an example of an externality?
a. Drug abuse affecting David's health.
b. Sara taking a break from work.
c. A transaction between two parties, affecting them alone.
d. Tom's smoking affecting his roommate's health.
d
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Which of the following helps economists avoid double counting in computing of GDP?
a. Including goods and services produced only within a given area. b. Only include transfer payments made by the government and not individuals. c. Only include capital purchases by corporations and not by family-owned firms. d. Avoiding the use of intermediate goods in calculating GDP.
Which of the following statements is not correct?
a. Common resources are rival in consumption but are not excludable. b. Uncongested toll roads are examples of club goods. c. When African elephants were privatized, the survival of the species deteriorated. d. National defense is not rival in consumption, nor is it excludable.
The unemployment resulting from wage rigidity and job rationing is called:
A. the natural rate of unemployment. B. the discouraged-worker effect. C. structural unemployment. D. insiders versus outsiders.
Carol has just purchased a cereal she saw advertised on TV because of the health benefits contained in the ad. The TV ad is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.