Which of the following best describes an externality?
A) something that is external to the economy
B) a sales tax on a good in addition to the market price
C) an effect of a transaction felt by someone other than the buyer or seller
D) anything produced in other countries
E) a change from what is normal
C
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What good or service creates positive externalities?
a. Vaccination against measles b. Vegan cookies c. Organic sweaters d. Eyesight correction surgery
Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply
Briefly explain how unemployment insurance can stabilize the economy. Give an example.
What will be an ideal response?
The generalized least square estimators for correcting heteroskedasticity are called weighed least squares estimators.
Answer the following statement true (T) or false (F)