Which of the following is an example of an activity that creates a positive externality?
a. an iron smelting factory emits sulfur dioxide into the air
b. the owner of a steamboat company dredges a river in order to improve navigation
c. a group of investors starts a business specializing in transporting goods via clipper ship
d. flatboat operators purchase steamboat tickets in order to return to their homes upstream
b. the owner of a steamboat company dredges a river in order to improve navigation
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If output equals 50,000 and full employment real GDP equals 45,000, then this economy has a(n)
A. demand gap. B. employment gap. C. recessionary gap. D. inflationary gap.
The government wishes to close a recessionary gap by increasing national income by $700 billion. The MPC = 0.8 . Two policies are offered. Policy A calls for $180 billion in increased government spending and $50 billion in increased taxes. Policy B calls for $200 billion in increased government spending and $100 billion in increased taxes. Which of the following will increase the national income
by the desired $700 billion? a. Both policies increase national income by $700 billion but Policy B offers a lower budget deficit. b. Both policies increase national income by $700 billion and create equal budget deficits. c. Neither policy increases national income by $700 billion. d. Only Policy A increases national income by $700 billion. e. Only Policy B increases national income by $700 billion.
_____________________ (Microeconomics/Macroeconomics) is the discipline that ezamines the performance and behavior of an economy as a whole.
Fill in the blank(s) with the appropriate word(s).
The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.