Milo drives to work 30 miles on the freeway every day. Briefly explain what type of spillover Milo’s actions are creating, and explain why it is this type of spillover and how it influences others.
What will be an ideal response?
Driving to work each day is a negative externality created by Milo because he creates negative effects that influence others besides himself. He adds to congestion on the highways, wear on and damage to the roads, and noise and air pollution that other people are subjected to.
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If the reserve ratio is 0.3 and a deposit of $1,000 is made to the bank, the bank can lend out $700
Indicate whether the statement is true or false
Between two countries, comparative advantage is found by comparing the:
a. relative costs of production in each country. b. absolute costs of production in each country after accounting for inflation. c. labor hours required to produce a bundle of products in each country. d. level of interest rates in each country. e. shipping and transportation costs of each country.
In this graph, which of the following shows that profits have been eliminated in the long run?
a. The MC curve is tangent with the MRLR
b. The ATC curve is tangent with DLR
c. The MC curve crosses DLR
d. The MC curve crosses ATC curve
In the figure above, how many units of corn are produced at point a?
A) 2000 B) 2500 C) 3000 D) We can’t tell without more information