An example of a negative externality is:
a. the benefit you receive when your neighbor installs a smoke detector
b. the reduction in profits for your company that occurs when there is a decrease in consumer demand for the product you manufacture.
c. the sleep you lose when your neighbor throws a loud party next door that keeps you awake.
d. the change in the property values of your neighbors' homes when you paint your house and landscape your front yard
c
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Differences in innate skills and the benefits associated with the division of labor result in
A) diminishing returns. B) self-sufficiency. C) absolute advantage. D) differences in productivity.
The identity stating that the total amount spent on final output equals the amount received for final output is known as the
A) equation of exchange. B) circular flow identity. C) identity equation. D) fundamental law of economics.
What's the difference between the nominal exchange rate and the real exchange rate?
What will be an ideal response?
In the Malthusian model of economic growth
A) Per capita consumption affects birth rates and death rates. B) Per capita consumption affects birth rates but not death rates. C) Per capita consumption affects death rates but not birth rates. D) Per capita consumption is always constant.