A person removes the anti-pollution devices on his automobile. An external cost associated with this is
A) the feeling of guilt the person feels for violating the law.
B) the ticket he gets when a highway patrol officer pulls him over.
C) the man's neighbor washes his car more often because of increasing smog.
D) the man buys less gasoline, reducing the income of local gas stations.
Answer: C
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The law of diminishing returns applies to
A) the short run only. B) the long run only. C) both the short and the long run. D) neither the short nor the long run. E) all inputs, with no reference to the time period.
Economics
a. is a narrowly focused discipline. b. is a broad-ranging discipline. c. concerns itself only with the U.S. economy. d. says little about "everyday life." e. deals with minor problems.
According to the rule of 70, if a person's saving doubles in 10 years, what interest rate were they earning?
a. 3.5 b. 7 c. 14 d. None of the above is correct.
Changes in which of the following will cause changes in the equilibrium federal funds rate?
A. the supply of reserves created through past open market operations B. the demand for excess reserves by banks C. the demand for required reserves by banks D. all of these