Which of the following describes an external benefit resulting from an individual's purchase of a winter flu shot?
a. A flu shot is less expensive than the cost of treatment when you get the flu
b. The income of doctors increases when you get a flu shot.
c. A flu shot reduces the likelihood that others will catch the flu from you.
d. A flu shot reduces the likelihood that you will miss work as a result of sickness, and, therefore, you will earn more income.
c
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Suppose that the economy is in long-run equilibrium and the government decided to engage in unexpected contractionary policy by decreasing the money supply
If we assume rational expectations, which of the following statements is correct about the effect of contractionary policy in the long run? A) The unemployment rate will decrease, real GDP will decrease and the price level will decrease. B) The unemployment rate will increase, real GDP will increase and the price level will increase. C) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will decrease. D) The unemployment rate will remain unchanged, real GDP will remain unchanged and the price level will increase.
International resources shared by all countries such as oceans and air are known as
(a) global commons. (b) free rider problems. (c) nonrenewable resources. (d) cooperative resources.
A mass-production bagel factory is considering the purchase of a flash freezer to improve the quality of the raw dough it provides supermarket bakeries
The freezer costs $750,000 and would increase business revenues by $48,000 a year after all expenses besides interest are paid. If the interest rate is 7.8 percent, what is the freezer's annual profit rate? A) 7.8 percent. B) 1.4 percent. C) -1.4 percent. D) 5.9 percent. E) -5.9 percent.
The Fed's objectives present it with a true dilemma when
a. there are demand shocks caused by shifts in money demand b. there are demand shocks caused by changes in spending c. there are negative supply shocks d. cyclical unemployment exists e. there is member bank opposition