A cost or benefit resulting from some activity that is imposed or bestowed on third parties is
A. a public good.
B. logrolling.
C. a market failure.
D. an externality.
Answer: D
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Mr. Blowfish opened a seafood store in December. He borrowed $60,000 from a bank at an annual interest rate of 8 percent. He used the funds he borrowed to purchase $60,000 of capital equipment. Over the year, he rented a building for $50,000 a year
During the first year of operation, Blowfish paid $45,000 to his employees, $20,000 for utilities, and $25,000 for raw fish he bought from other firms. In December of the next year, the market value of his capital was $50,000. Blowfish's best alternative to running the seafood store is to work for a grocery store as a sales clerk for $20,000 a year. a) What is the economic depreciation of Blowfish's capital? b) What are Blowfish's total opportunity costs? c) What is Blowfish's economic profit?
As of 2009, the U.S. federal deficit had reached nearly __________ of GDP
a. -3.0 percent b. -6.0 percent c. -12.0 percent d. -5.0 percent e. -7.0 percent
Suppose you drive a car that gets good gas mileage, and you notice that more and more people are driving gas-guzzling cars. Their increased demand for gas:
A. does not change the price you pay, but it reduces the quantity of gas supplied. B. does not affect you. C. is likely to cause the price you pay for gas to increase. D. is likely to cause the price you pay for gas to decrease.
Ithout productivity growth, what is the longrun effect of labor migration on the receiving country?
a. There will be an increase in production of the laborintensive good. b. Wages will fall. c. Returns to capital will increase. d. None of these is the longrun effect.