If crop dusting on your farm causes your neighbors to have sore throats, then crop dusting is creating
A. external costs.
B. only explicit costs.
C. internal costs.
D. opportunity costs.
Answer: A
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If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, the cooperative surplus will ________ if the negotiated price is $1.50 as opposed to $2.00
A) increase B) decrease C) not change D) All of the above are possibilities.
The central bank is the only authorized institution with the power to issue currency
Indicate whether the statement is true or false
Decreasing marginal returns occur in the short run as more labor is hired to work in a fixed sized plant because
A) less efficient and less productive workers are hired. B) adding more workers exhausts the possible gains from specialization. C) the entrepreneur does not know how to manage more workers. D) each worker will produce more than the worker previously hired. E) the plant becomes less specialized.
If the demand curve for an inferior good is drawn,
A. the curve will generally have a positive slope. B. the curve cannot be drawn; demand curves only exist for normal goods. C. the curve will generally have a negative slope. D. the curve will shift when the price of the good changes.