Sometimes, when goods are produced and consumed, side effects are felt by people who are not directly involved in the market exchanges. In general, these side effects are called
A. Coase effects.
B. externalities.
C. public goods.
D. internalities.
E. none of the above
Answer: B
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An example of permanent insurance is ________ insurance, and an example of temporary insurance is ________ insurance
A) term; variable life B) whole life; variable life C) whole life; term D) term; whole life
(Consider This) Ticket scalping is likely to:
A. produce a less interested audience. B. reduce the well-being of ticket sellers. C. reduce the well-being of ticket buyers. D. produce a more interested audience.
Why does our government enforce antitrust legislation?
A. because monopolies are known to be unfair to their stockholders B. because the government wants to create competition in markets in the interests of promoting efficiency C. because the government wants to create competition in markets in the interests of promoting an equal distribution of income D. because monopolies are known to be unfair to their employees
Under the rational expectations hypothesis, if wages adjust rapidly to new information about intended policy actions, monetary policy can have an effect
A. in both the short and the long run. B. in the long run, but not the short run. C. only in the long run and only if the policy is fully anticipated. D. only in the short run and only if the policy is unanticipated.