Which of the following is not an example of an externality?
A. Carbon dioxide from energy generation that adds to the worldwide long-term greenhouse effect.
B. Heat from a factory that makes the neighboring tomato patches more productive.
C. Acidic by-products of fossil fuel combustion that produce acid rain.
D. A defective part that causes an automobile to break down three months after purchase.
Answer: D
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Which of the following groups does not belong with the others?
A. Permanent residents B. Green-card recipients C. Temporary immigrants D. Overstaying aliens
Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this will cause the budget constraint to
A. rotate inward B. rotate outward C. shift out in a parallel way D. shift inward in a parallel way E. none of the above
Of the following countries, which country's government collects the largest amount of tax revenue as a percentage of that country's total income?
a. Denmark b. United States c. Canada d. Greece
Answer the following statement(s) true (T) or false (F)
1. Governments should avoid investing in education because it has little impact on productivity or economic growth. 2. Rapid population growth can negatively impact per capita output. 3. The law of diminishing marginal returns means that population growth can result in workers with insufficient capital. 4. A larger population means a larger labor force, greater production, and higher standards of living for the average worker. 5. With a higher population growth rate comes greater capital stock per worker.