An externality is:
a. always a benefit to the recipient.
b. always a detriment to the recipient.
c. an activity that occurs in a business which is unknown to management.
d. unintended benefits or costs imposed on third parties as a result of economic activity.
e. an act, caused by a firm located in this country, which has an effect on a person in a foreign country.
d
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If a single-price monopoly is making a large economic profit, what keeps other firms from competing away the profit?
A) There are barriers to entry. B) The monopoly must be keeping the amount earned secret. C) The market must be too small. D) The existing firm's ATC must be too large to allow competitors to enter and earn an economic profit. E) Nothing, other firms will enter and will compete away the profit.
The money supply is $6 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.1. The monetary base is equal to
A) $2 million. B) $2.4 million. C) $2.6 million. D) $4 million.
The monetary base will increase if
A) currency outstanding decreases. B) loans by the Fed to commercial banks decrease. C) bank reserves increase. D) vault cash in banks increases.
The United States' first income tax was imposed during
(a) the American Revolutionary War (1763–1789). (b) the Civil War (1861–1865). (c) the 1930's Great Depression. (d) World War II (1939–1945).