In the presence of ________ externalities, too much of the good is produced and in the presence of ________ externalities, too little of the good is produced.
A. no; negative
B. positive; no
C. negative; positive
D. positive; negative
Answer: C
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Explain what is meant by investment by MNCs encouraging inappropriate consumption
What will be an ideal response?
Velocity is commonly calculated by which of the following formulas?
A. (Value of money stock) / (Value of nominal GDP) B. (Value of transactions) / (Money stock) C. (Value of financial transactions) / (GDP) D. (Value of output) / (Value of input)
Figure 2-2
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Production at point H is
a.
unattainable given currently available technology and resources
b.
attainable by more fully employing already available resources
c.
attainable by using better technology which is already available
d.
attainable if beef production drops to zero
e.
attainable if all available resources are used to produce wheat
Explain the impact on the domestic economy of an import quota on oranges.
What will be an ideal response?