When we use money to purchase goods and services, we are using money as a
A) reserve of wealth.
B) unit of account.
C) medium of exchange.
D) bartering tool.
E) store of value.
C
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Refer to Pollutants. Suppose transactions costs are zero. Also suppose the chemical plant is not liable for the farm's crop damages and can continue to pollute the stream. What will be the result of private bargaining between the farm and the chemical plant?
A chemical plant's production adds pollutants to a stream which irrigates a farm's crops. The pollutants damage the farm's crops, increasing the firm's costs by $800 per month. The crop damage may be eliminated in two ways: the chemical plant can install a new filtering system costing $300 per month, or the farm can install a new irrigation system costing $600 per month. a. The chemical plant will pay the farm $800 per month in crop damages. b. The farm will bear the $800 per month cost of crop damages. c. The chemical plant will install the new filtering system. d. The farm will install the new irrigation system.
Refer to Figure 11.5. An increase in the level of investment is best illustrated by diagram
A) A. B) B. C) C. D) D.
At Joey's Lawncutting Service, the production function is represented as: q = min(m, l), where q is the quantity of lawns mowed. The inputs are m, the lawn mower, and l, the laborer
Which graph in the above figure best represents the isoquants for Joey's Lawncutting Service when Capital per day is on the vertical axis and Labor per day is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
Which of the following is NOT an example of an externality?
A) A bread company emits a wonderful aroma in the air that makes people smile. B) The neighbor's wind chimes interfere with your sleep. C) A firm fires 500 people. D) Cancer-causing chemicals are dumped into the drinking water supply of a city.