What is a positive externality?
What will be an ideal response?
Answer: an economic side effect that generates unexpected benefits.
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In a given year, a country's GDP = $9841, net factor payments from abroad = $889, taxes = $869, transfers received from the government = $296, interest payments on the government's debt = $103, consumption = $8148, and government purchases = $185
The country had private saving equal to A) $285. B) $3850. C) $2397. D) $2112.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
If marginal utility is positive, then total utility is:
A. constant. B. negative. C. increasing. D. decreasing.
In well functioning markets, the degree of product variety reflects which of the following?
A. gains from coordination B. similar preferences in consumers' tastes C. cost diseconomies from standardization D. gains from network externalities