Negative externality occurs when
A. the production of a good harms third parties.
B. the production of a good helps third parties.
C. the consumption of a good helps third parties.
D. a buyer is sold inferior and damaged merchandise.
Answer: A
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy
If the effect on aggregate supply was larger than the figure above shows, as a result the price level would be ________ 110 and real GDP would be ________ $17 trillion. A) equal to; equal to B) equal to; larger than C) higher than; larger than D) smaller than; less than E) smaller than; larger than
The Arrow impossibility theorem states that
A) it is impossible for a majority voting system not to consistently represent the preferences of voters. B) it is impossible to separate corporate desires from public bureaucracy. C) no system of voting can be devised that will ensure a 100 percent voter turnout. D) no system of voting can be devised that will always consistently represent the underlying preferences of voters.
Over the past year, productivity grew 1.8%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
Suppose a U.S. automobile manufacturer produced $200 million worth of automobiles in the United States in 2009, but $50 million worth went unsold. How much was the company's contribution to GDP?
a. $50 million b. $250 million c. $150 million d. $200 million e. -$150 million