Which of the following is an example of a situation where a third party benefits from a market transaction by others?
a. Inoculation against communicable diseases
b. An increase in the level of air pollution in neighborhoods near a power plant
c. Allowing a chemical company to use a natural lake to discharge waste
d. Two firms trading pollution credits to avoid reducing their toxic emissions
a
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If firms offer an efficiency wage:
a. the quantity of labor supplied will exceed the quantity of labor demanded. b. the quantity of labor demanded will exceed the quantity of labor supplied. c. the quantity of labor supplied will equal the quantity of labor demanded. d. absenteeism is expected to increase.
A leftward shift of a demand curve is called a(n)
a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded.
Which of the following may not characterize an oligopoly?
A. A few firms. B. Many firms. C. Substantial market power. D. High barriers to entry.
What effect does a depreciation of the dollar have on real GDP in the United States in the short run?
A) Real GDP will fall. B) Real GDP will rise. C) Real GDP will be unaffected by the depreciation of the dollar. D) Real GDP will be unchanged, but nominal GDP will rise.