A pecuniary externality _____

a. affects the prices facing the third parties on which the externality falls
b. affects the products bought by third parties
c. affects the production functions of third parties
d. affects the production functions of producers of the externalities


a

Economics

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As banks lend money in the form of checking accounts:

a. M2 money supply rises when the loan is made and then falls when the loan is spent. b. M2 money supply rises when the loan is made and then falls when the loan is cleared. c. M2 money supply does not change. d. M2 money supply rises when the loan is made and stays at that level until the loan is repaid. e. M2 money supply rises when the loan is made and permanently stays higher until the central bank reverses it.

Economics

What would happen in the market for loanable funds if the government were to increase the tax on interest income?

a. The supply of loanable funds would shift right. b. The demand for loanable funds would shift right. c. The supply of loanable funds would shift left. d. The demand for loanable funds would shift left.

Economics

Which of the following is true?

What will be an ideal response?

Economics

The introduction of word processing software that increases the demand for workers with computer skills relative to those without such skills is an example of:

A. skill-biased technological change. B. the diminishing marginal product of labor. C. increasing reservation prices. D. globalization.

Economics