A cost or benefit of a good imposed on people other than the consumers or producer of a good is called a(n):
a. public good. b. merit good.
c. private good. d. externality.
d
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The recovery from the low point of the Great Depression lasted for ____ months.
A. 12 B. 25 C. 50 D. 90
Suppose that last year, the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?
A) The CPI does not change because the change in the two prices is the same. B) The CPI increases because milk is more expensive. C) The CPI decreases because strawberries are cheaper. D) The CPI might increase or decrease depending on the quantities in the CPI market basket. E) The change in the CPI depends how the market basket changed between the two years.
According to your authors, which of the following is necessary for real-world markets to clear?
A) Supply and demand curves B) The hard work of expert economists C) A well-managed national economic plan D) "Rules of the game," which allow for competitive bidding on scarce goods E) Nothing more than pure luck
Shoe-a-holic Cathy started her own line of custom made, hand embellished wedding shoes. She opened up her own shop paid $2500 in fixed licensing fee. She used about $3000 in raw materials and made $3500 . At the end of the first month, Carly, her sister
looked at her financials and told her that she was losing money and should shut down. Cathy is heartbroken. As an economics guru, what would you advise her to do?