When both internal and external costs for using a scarce resource are included, then there is
A) an increase in the production of the good.
B) a negative externality.
C) an increase in the price of the good.
D) a positive externality.
Answer: C
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The table above gives the purchases of a typical consumer in a country comprised of one large city. These consumers purchase only restaurant meals and parking. The year 2010 is the reference base period
a. Find the total cost of the CPI market basket for 2010 and 2011. b. What is the CPI in 2010 and in 2011? c. What is the inflation rate between 2010 and 2011?
A currency board
a. issues domestic currency in exchange for foreign currency at an exchange rate of its choosing. b. is responsible for the conduct of the nation's monetary policy. c. promises to continue redeeming the issued currency at a fixed rate. d. does all of the above.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
In the long run, equilibrium positions that arise in both monopolistically competitive and perfectly competitive markets are
A. P = ATC and P = MC. B. MR = MC and P = ATC. C. MR = MC = P. D. MR = MC and P = MC.