Positive externalities arise when
A) an unprofitable firm is shut down.
B) a profitable firm is regulated.
C) tax rates are reduced.
D) production of a good generates benefits that spill over to third parties.
D
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Briefly define an endogenous variable and an exogenous variable. What variables are endogenous in the classical model? What variables are exogenous
What will be an ideal response?
If expected inflation is 2%, the real interest rate is 7% and the economy is growing at a rate of 4%, the nominal interest rate is equal to
a. 9% b. 5% c. 7% d. 6% e. none of the above
All of the following are examples of natural monopolies except
A. College bookstores. B. Electricity companies. C. Railroad companies. D. Local telephone companies.
An example of an intangible good is: a. an automobile. b. a new house
c. a snowplow. d. friendship.