Which of the following is an example of a positive externality?
a. A college student buys a new car when she graduates.
b. The mayor of a small town plants flowers in the city park.
c. Local high school teachers have pizza delivered every Friday for lunch.
d. An avid fisherman buys new fishing gear for his next fishing trip.
b
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Internal economies of scale arise when the cost per unit
A) falls as the average firm grows larger. B) rises as the industry grows larger. C) falls as the industry grows larger. D) rises as the average firm grows larger. E) remains constant over a broad range of output.
Which of the following would likely increase private saving?
a. Both expansion of IRA type accounts and a consumption tax. b. Expansion of IRA type accounts, but not a consumption tax. c. A consumption tax, but not expansion of IRA type accounts. d. Neither expansion of IRA type accounts nor a consumption tax.
Which of the following scenarios would make monetary policy the most difficult to address?
A) A worldwide spike in oil prices resulting in higher production costs. B) A rise in unemployment that causes consumers to spend less. C) A reduction in business confidence that leads to a reduction in investments D) A booming housing market that causes inflation to rise.
If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP price index for this period?
What will be an ideal response?