A large farm uses fertilizer that nearby landowners complain may contaminate their water. Tests are conducted and contaminants are found. The costs resulting from this decision are referred to as
A. factor costs.
B. external costs.
C. implicit costs.
D. opportunity costs.
Answer: B
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The interest-rate-based monetary policy transmission mechanism emphasizes the
A) indirect effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. B) direct effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level. C) direct effect of a change in the money supply that operates via a change in total planned expenditures generated by a change in the interest rate. D) indirect effect of a change in the money supply that operates via a change in total planned production generated by a change in the price level.
Stable inflation implies:
A. that the rate of inflation conceals relative price changes. B. that inflation is predictable. C. that the rate of inflation averaged over many years is zero. D. low rates of unemployment.
One of the main causes of economic inequality in Latin America is the
A) failure of governments to support urban consumers. B) lack of progress in raising agricultural productivity. C) lack of governmental interest in solving the problem of inequality. D) focus of governments on agricultural exports to the detriment of food production.
Suppose a country has 1 billion people. 75 percent of its citizens are in the labor force, with 90 million unemployed. Full employment occurs at 2 percent. Based on this information, by what percentage has real output failed to reach its potential according to the revised Okun's Law?
A. 12 percent. B. 2 percent. C. 24 percent. D. 10 percent.