An external effect that generates costs to a third party is called
a. free-ridership c. a negative externality
b. a positive externality d. a marginal private cost
c. a negative externality
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Why is the demand for loanable funds downward sloping?
A) People save less when the interest rate is low. B) More people borrow money when interest rates are low than when they are high. C) Fewer investment projects have returns that can beat higher interest rates, so people are more willing to invest at higher interest rates. D) People save more when the interest rate is high.
Which of the following could be described as an aggregate demand-driven model of business cycles?
a. Keynesian model. b. monetarist model. c. New Keynesian model. d. classical model. e. a, b, and c.
At what quantity is Sarah Machinery indifferent between two technologies?
a. 5 b. 6 c. 7 d. 8
Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PCalculate the change in producer surplus when the United States engages in free trade and imports skateboards from the rest of the world at a per unit price of $75.
A. +$3,375. B. +$2,812.50. C. -$2,812.50. D. -$3,375.