If an externality is created by a single person or firm, and affects only a single person or firm, then
a. it is referred to as a single externality
b. the inefficiency caused by that externality may be resolved by those two parties
c. the externality takes the form of a side payment
d. Pareto efficiency is guaranteed
e. fairness dictates that the externality be removed
B
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If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then
A) country H but not country F will gain from trade. B) country H and country F will both gain from trade. C) neither country H nor F will gain from trade. D) only the country whose government subsidizes its exports will gain. E) country F but not country H will gain from trade.
Workers who deal with information are generally referred to as
A) non-productive workers. B) production workers. C) knowledge workers. D) migrant workers.
In general, a bank that held excess reserves would earn lower profits as a result
a. True b. False Indicate whether the statement is true or false
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.