Which of the following is an example of an externality?
a. Annie purchases a new dress.
b. Antonio's dog barks loudly during the night, waking his neighbors.
c. Harold sells a book to Cathy, who reads the book and then gives it to James as a gift.
d. Gloria watches a scary movie.
b
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Companies spend ____ on pricing decisions
A) too much time B) the right amount of time C) too little time D) too much money
Explain the concept of an empty core
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium. a. The real risk-free
interest rate rises and real GDP falls. b. The real risk-free interest rate falls and real GDP rises. c. The real risk-free interest rate rises and real GDP remains the same. d. The real risk-free interest rate and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
As the price of leather increases
A. the price of leather shoes will decrease. B. the demand for leather shoes will increase. C. the quantity of leather shoes demanded will decrease. D. the supply of leather shoes will increase.