Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) External cost is the difference between social and internal costs.
B) Internal cost is the sum of social and external costs.
C) Social cost is the difference between internal and external costs.
D) none of the above
Answer: A
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Stagflation usually results from
A) a supply shock. B) an increase in aggregate supply. C) a decrease in aggregate demand. D) an increase in aggregate demand.
Which of the following statements about public education is TRUE?
A) Over the last 40 years, there has been an increase in spending for public education, while there has not been a significant increase in performance. B) Over the last 40 years, there has been a decrease in public spending for public education, while there has not been a significant increase in performance. C) Most of the increases in public spending on public education have gone into programs that have increased student learning. D) Over the last 40 years there has been no decline in any of the measures of student performance in public education.
A successful advertising campaign would likely
a. increase price elasticity of demand by stressing the uniqueness of the product b. reduce price elasticity of demand by stressing the uniqueness of the product c. reduce price elasticity of demand by informing consumers of the availability of substitutes d. not alter the demand curve e. generally make the demand curve shift inward
A quality-of-life innovation generates ________ externalities or reduces ________ externalities.
A. revenue; cost B. positive; negative C. marginal; average D. network; out-of-network