When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
a. externality.
b. common pool problem.
c. nonexcludable resource.
d. public good.
a
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Which of the following macroeconomic variables is procyclical and leads the business cycle?
A) Business fixed investment B) Residential investment C) Nominal interest rates D) Unemployment
Among the reasons that health care expenditures have grown so rapidly in the United States over the last two decades are all of the following EXCEPT
A. third-party financing. B. an emphasis on wellness programs and preventive medicine. C. the aging of the U.S. population. D. expensive new medical technologies.
If a 1 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary b. cross elasticity between the two goods is positive c. two goods are substitutes d. price elasticity of demand for the good whose quantity demanded increased must be inelastic e. price elasticity of demand for the good whose quantity demanded increased must be elastic
Mutual Funds
What will be an ideal response?