Externalities affect only the buyer and seller involved in an exchange
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore
A) People in Hong Kong sacrifice two dolls for every squirt gun produced. B) People in Taiwan sacrifice two dolls for every squirt gun produced. C) People in Hong Kong sacrifice 2 squirt guns for every doll produced. D) none of the above are true.
The oil shock of 2007-2008 saw the price of oil rising from less than $60 a barrel in March 2007 to over $145 a barrel in July 2008, and decreasing again to just over $30 a barrel in December 2008
Assuming the economy was at potential GDP prior to the oil shock, the increase in the price of oil, such as what occurred between March 2007 and July 2008, acts as a negative supply shock, causing the inflation rate to ________ and the output gap to ________. A) increase; become negative B) increase; become positive C) decrease; become negative D) decrease; become positive
The consumer price index (CPI) is designed to measure
a. the impact of price changes on the value of real GDP. b. the nominal value of consumer spending on food, clothing, and energy. c. the total spending of households as a percentage of GDP. d. the impact of price changes on the cost of the typical bundle of goods purchased by households.
Which furniture production process would have the highest production function?
A. Furniture made by handsaw and hammer B. Furniture made with power equipment C. Furniture with a mix of handmade and automated labor D. Furniture made in an automated furniture factory