Which of the following is an example of an externality that has been internalized?
A. Acid rain, originating in the United States, destroys Canadian forests.
B. Robert Frost breathes the air that has been polluted by the emissions of a nearby steel plant.
C. Erica Evans, a beekeeper, decides to keep more bees because her neighbor, an orchard owner, has agreed to compensate her for the bees' pollination of the orchard.
D. Miguel Sanchez, a concert pianist, rehearses Beethoven's "Moonlight Sonata" and his neighbors enjoy the "free concert."
E. all of the above
Answer: C
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According to the Solow model, a benefit of policies to limit population growth might be ________
A) that smaller families are more likely to contribute to technological advances B) that smaller families have better access to birth control methods and devices C) that smaller families might provide each person a larger share of national income D) that smaller families have less need to save, and so enjoy higher consumption
With respect to the demand side, the Keynesian model
a. includes monetary factors. b. provides a role for government spending and taxes. c. includes autonomous investment. d. All of the above e. None of the above
When banks borrow from each other the interest rate charged is known as the
a. discount rate. b. prime rate. c. federal funds rate. d. over-the-counter rate.
Exhibit 4-1 Supply and demand data Price Quantitydemanded Quantitysupplied $1.00 500 50 1.50 450 150 2.00 400 250 2.50 300 300 3.00 150 350 In Exhibit 4-1, suppose that a reduction in the price of an important input used to produce the good causes an increase in quantity supplied of 150 units at every price level. Assuming that demand does not change, the new equilibrium price will be:
A. $1.00. B. $1.50. C. $2.00. D. $2.50.