Explain the concept of externality and give an example
The impact of one person's actions on the well-being of a bystander; pollution
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Refer to Budget Lines. If the consumer purchased basket B last year and purchases basket C this year, we can conclude that
a. the consumer is not behaving optimally.
b. the consumer's tastes changed between this year and last year.
c. the consumer's indifference curves cannot be convex.
d. the law of demand does not hold for this consumer.
Does a subsidy to sellers affect the demand curve?
A. Yes, it shifts demand up by the amount of the subsidy. B. Yes, it shifts demand to the right by the amount of the subsidy. C. No, the quantity demanded will increase, but the demand curve does not move. D. No, the quantity demanded will decrease, but the demand curve does not move.
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.10 to 0.07 while raising the number of accidents per period from 35,000 to any more than
A) 35,000. B) 38,500. C) 37,450. D) 50,000.
What are the two characteristics that are essential to economic analysis of invention?
A. Fixed costs and public goods B. Fixed costs and private goods C. Variable costs and public goods D. Variable costs and private goods