When airplanes take off and land at Logan airport, residents of East Boston complain about the noise. The same planes make the same noise during the trip to Boston from Paris, but there are no ____ for most of the trip because ____.
A. free riders; passengers must pay to board the plane
B. third parties; there are no externalities
C. externalities; there are no third parties
D. complaints; airplanes are insulated
Answer: C
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Refer to Figure 24-1. Ceteris paribus, an increase in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
A subsidy to firms intended to reduce pollution in an industry would
A. shift the LRAC curve upward. B. have the same impact on the firm as a tax. C. likely drive some existing firms from the industry. D. likely have the paradoxical effect of increasing pollution in the industry in the long run.
Investing in a mutual fund made up of hundreds of stocks of different companies is an example of all of the following except:
A. risk reduction. B. diversifying. C. spreading risk. D. increasing the variance of a portfolio.
Refer to the table below. To increase output from 99 to 132 units requires ________ extra employee-hours; to increase output from 132 to 165 units requires ________ extra employee-hours.OutputPer DayNumber ofEmployeeHours Per Day00331662994132716511
A. 11; 18 B. 4; 3 C. 3; 4 D. 7; 11