An economic activity in which benefits or costs affect third parties is called
A) a public good.
B) a third-party good.
C) the exclusion principle.
D) an externality.
Answer: D
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Economic growth is determined by forces outside the control of the market system.
Answer the following statement(s) true (T) or false (F)
Consider the market for blackjack dealers in Las Vegas. In each of the following cases, explain what happens to the equilibrium wage rate and the quantity of blackjack dealers hired
a. Three new large resort casinos open in Las Vegas. b. Fewer students are attending classes to learn to become blackjack dealers. c. Traditionally, blackjack dealing is a field that attracts foreign workers. However, changes in immigration laws have made it more difficult for foreign workers to come to Las Vegas to obtain jobs. The demand for blackjack dealers, however, does not change. d. Advances in technology have increased the popularity of electronic blackjack machines and decreased the popularity of live table games which require the use of a dealer.
The tendency of the prices of identical baskets of goods across countries to converge: a. Is weaker to the extent the countries compared have substantial tariffs on imported goods. b. Is weaker to the extent the countries compared have limiting quotas on imported goods. c. Is weaker for goods and services not traded internationally
d. All of the above are true.
Means-tested income transfers refer to
a. the average amount of the annual governmental transfers. b. transfers that are limited to families with an income below a certain cutoff point. c. income transfers that are specifically paid for by the top 1 percent (wealthiest) of tax payers. d. none of the above.