Which of the following is NOT an example of a good with an external cost?
A) electricity generation producing carbon dioxide emissions that contribute toward global warming
B) logging that pollutes a nearby river
C) Jess smoking near her non-smoking roommate
D) Ahmed working at a bank and getting a flu shot each fall
E) noise pollution from aircraft
D
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With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true?
A. Higher curves correspond to larger outputs. B. An indifference curve will generally have a negative slope. C. An indifference curve is typically assumed to curve inward toward the origin near its middle. D. All of the responses are true for production indifference curves.
If official U.S. poverty statistics included in-kind transfer payments,
a. the poverty rate would be close to zero b. the poverty rate would be lower c. the government deficit would be lower d. the inflation rate would be higher e. the top 10 percent of those in the income distribution would be wealthier
Because households have limited incomes, they must
a. rarely take vacations b. live below the poverty line c. allocate their spending carefully d. gamble in casinos frequently e. save for the future
Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?
a. The Fed does not have the tools needed to alter the supply of money. b. Monetary policy is unable to alter short-term interest rates. c. The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable. d. It takes the Fed a long time to change the direction of monetary policy.