The noise inflicted on bystanders by users of chain saws, lawn mowers, and motorcycles is an example of
a. a positive externality
b. a public good
c. nonexcludability
d. marginal private benefit exceeding marginal social benefit
e. marginal social cost and the free-rider problem
D
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Mark Frost grows apples in a perfectly competitive market. If we drew a line in a graph that illustrates Mark's total revenue from selling apples, it would be
A) a straight, upward-sloping line. B) a straight, downward-sloping line. C) a horizontal line. D) a curve that is negatively sloped at low levels of output and positively sloped at higher levels of output.
Explain why the simple deposit multiplier overstates the true deposit multiplier
What will be an ideal response?
When inflation causes relative-price variability,
a. consumer decisions are distorted and the ability of markets to efficiently allocate factors of production is impaired. b. consumer decisions are distorted, but markets are still able to efficiently allocate factors of production. c. consumer decisions are not distorted, but the ability of markets to efficiently allocate factors of production is impaired. d. consumer decisions are not distorted and markets are still able to efficiently allocate factors of production.
If the t statistic for the presence of a unit root in a variable is ?7.22 and the 5% critical value is ?2.86, there is strong evidence against a unit root in the variable.
Answer the following statement true (T) or false (F)