The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is
A) a positive externality.
B) a negative externality.
C) a positive externality for some consumers and a negative externality for others.
D) not an externality.
D
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Workers covered by defined contribution pension plans retire at later ages than workers covered by defined benefit plans
Indicate whether the statement is true or false
Suppose that you borrow $10,000 for one year, and at the end of the year, you must repay $10,450. The interest rate is
A) 14.5 percent. B) 8.0 percent. C) 4.5 percent. D) 2.7 percent.
A tax placed on a good
a. causes the effective price to sellers to increase. b. affects the welfare of buyers of the good but not the welfare of sellers. c. causes the equilibrium quantity of the good to decrease. d. creates a burden that is usually borne entirely by the sellers of the good.
When a country saves a larger portion of its GDP than it did before, it will have
a. more capital and higher productivity. b. more capital and lower productivity. c. less capital and higher productivity. d. less capital and lower productivity.