The term externalities refers to
A) consequences of action not taken into account in making decisions.
B) social interactions associated with urban-industrial economies.
C) the superficial consequences of decisions.
D) the visible consequences of decisions.
A
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All else being equal, if the law of supply states that as the price of a good, service, or resource rises
A. the quantity supplied will decrease, which explains the shape of the supply curve. B. the quantity demanded will decrease, which explains the shape of the supply curve. C. the quantity supplied will increase, which explains the shape of the supply curve. D. the quantity demanded will increase, which explains the shape of the supply curve.
Which of the following is always true of monopolists?
a. They charge the highest possible price. b. They always earn high profits. c. They do not have to worry about demand. d. They charge a price higher than marginal cost.
One important reason why the Solow residual may be strongly procyclical even if the actual technology used in production doesn't change is that
A) employment is procyclical. B) resource utilization is procyclical. C) demand shocks are the dominant force determining the business cycle. D) the coefficients (a and 1 - a) on capital and labor in the production function are procyclical.
In Figure 10-5 above, suppose that the level of government expenditures increases. This causes a movement of the steady-state point such as from points
A) A to B. B) D to B. C) D to C. D) A to C. E) A to D.