Which of the following is the best example of an action that imposes an external cost?
A. Wear and tear on your car as the result of frequent use.
B. Deterioration in the average quality of a house you own as the result of poor maintenance.
C. Water pollution from an upstream factory that increases the cost of providing clean water to downstream residents.
D. A rose garden on your property from which your neighbor gets much enjoyment.
Answer: C
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In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
a. the fact that their governments follow policies that explicitly work against economic integration. b. racial discrimination. c. the fact that their governments impose extremely high mortgage taxes. d. the establishment of minimum wages. e. the fact that they are too poor to trade anything with the rest of the world.
Which of the following is an example of an intermediate product?
A. The lumber produced by Boise Cascade and sold to a builder of old houses B. An antique car sold to the highest bidder C. A pair of skis sold by a sporting goods retailer to a skier D. A share of IBM stock
The rule of 72 implies that a country will double its income in about 18 years if its growth rate is:
A. 4 percent. B. 12 percent. C. 6 percent. D. 8 percent.
Use the below axes to draw a supply and demand diagram that illustrates the long-run situation in agriculture. Explain the problem
