Which of the following is an example of a negative externality?
A. An increase in the value of land you own when a nearby development is completed
B. The costs paid by a company to build an automated factory
C. Falling property values in a neighborhood where a disreputable nightclub is operating
D. The higher price you pay when you buy a heavily advertised product
C. Falling property values in a neighborhood where a disreputable nightclub is operating
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The condition that states that the domestic interest rate equals the foreign interest rate minus the expected appreciation of the domestic currency is called
A) the purchasing power parity condition. B) the interest parity condition. C) money neutrality. D) the theory of foreign capital mobility.
When the Federal Reserve System was created, its geographic decentralization reflected people's desire for regional monetary independence
Indicate whether the statement is true or false
If the economy is currently in a recessionary gap,
A) all economists will agree that the economy can remove itself from the recessionary gap without government intervention. B) some economists will argue that the economy can remove itself from the recessionary gap without government intervention. C) no economist will state that the economy can remove itself from the recessionary gap without government intervention. D) all economists will agree that over time the recessionary gap will worsen.
A company producing sports equipment wishes to increase its total revenue. Should it increase or decrease its price when the product's price elasticity of demand is equal to -0.8?
(a) Increase - the good is price inelastic and in order to increase TR the firm should increase its price. (b) Decrease - the good is price elastic and in order to increase TR the firm should decrease its price. (c) Increase - the good is price elastic and in order to increase TR the firm should increase its price. (d) Decrease - the good is price inelastic and in order to increase TR the firm should decrease its price.