A negative externality is a situation where:
a. a third party suffers from a market transaction by others
b. a third party benefits from a market transaction by others.
c. a market is able to maximize net social welfare.
d. there is an increase in the private cost of a market transaction.
a
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Refer to the above figure. If box D represents the product market and flow (6) represents consumption expenditures, then box C is:
A. businesses, flow (7) is goods and services, and flow (8) is revenue. B. businesses, flow (7) is revenue, and flow (8) is goods and services. C. households, flow (7) is goods and services, and flow (8) is revenue. D. households, flow (7) is revenue, and flow (8) is goods and services.
In Figure 2.1, Box 6 would be labeled
A. Q/t for quantity per unit of time. B. S for supply. C. P for price. D. P* for equilibrium price.
Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________. 
A. B; C B. A; C C. B; A D. A; B
Which of the following is true of American Depository Receipts (ADRs)? a. ADRs cannot be sold "over the counter." b. Each ADR is backed by a specific number of the issuer's local shares
c. An ADR is a stock that trades in foreign countries but represents a specified number of shares in a U.S. corporation. d. For foreign companies, ADRs are an easy way to purchase raw material from U.S. producers. e. ADRs are issued or sponsored in the United States by the federal government.