What the economist calls externalities create social problems
A) because opportunity costs are low when people live close to one another.
B) only when the externalities are negative spillovers.
C) partly because people have a limited ability to empathize.
D) when people know about all the consequences of their behavior.
C
You might also like to view...
According to the classical theory of international trade
A) only countries with low wages will export. B) only countries with high wages will import. C) countries with high wages will have higher relative prices of all goods. D) All the above are false.
The actual real wage must be below the equilibrium real wage in order to encourage firms to produce at any output level above the natural rate
Once workers realize this situation, their expected price level will gradually rise and they will demand a higher nominal wage. This description of a business cycle adjustment is part of which of the following theories? A) Classical model B) original Keynesian model C) Friedman fooling model D) the RBC model
Which of the following equations best represents the long-term real interest rate? The long-term real interest rate =
A) the short-term real interest rate + the term structure effect + the default-risk premium + the expected rate of inflation B) the short-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation C) the long-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation D) the short-term nominal interest rate - the term structure effect - the default-risk premium + the expected rate of inflation
Marginal revenue product is defined as
a. the total revenue generated by inputs b. the additional output produced by one additional unit of a resource, other things constant c. the marginal revenue from each unit of output d. the total revenue divided by the number of resources employed e. the additional revenue generated by one additional unit of a resource, other things constant