Which of the following is an example of an international externality, in which production (or consumption) activities in one country impose external costs on other countries?
A. Transborder pollution
B. Moral hazard
C. Persistent dumping
D. Free-riding
Answer: A
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In the figure above, the marginal rate of substitution (MRS) at point A is
A) greater than the MRS at any other point on the indifference curve. B) equals the MRS at all other points on the indifference curve. C) less than the MRS at any other point on the indifference curve. D) equal to the slope of the budget line.
Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal interest rate, it can be expected that
a. borrowers will hope that prices fall. b. lenders will hope that prices rise. c. lenders will hope that the purchasing power of money will fall. d. borrowers will hope that prices rise.
Which of the following will most likely have the greatest effect on an individual's consumption function?
a. winning a small amount in the lottery b. a one-time tuition grant c. a week of high overtime pay d. an inheritance paying a modest annual dividend
In the United States, the IRS estimates that about one ____ of individual income tax due to the federal government is not paid.
Fill in the blank(s) with the appropriate word(s)