Barking dogs cannot be considered an externality because externalities must be associated with some form of market exchange
a. True
b. False
Indicate whether the statement is true or false
False
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Assume a simple economy without a government and that saving and borrowing behavior is never observed. Then the value of
A) production is equal to income. B) expenditures is less than the value of production. C) production is less than the value of expenditures. D) production is less than income.
One should be wary of consultants peddling best practices or secrets to success because
a. They have different incentives than you do b. Such best practices are public knowledge and easily duplicated c. These best practices can at best only provide temporary profitability d. All of the above
Figure 4-17
Refer to . Suppose a price floor of $7.00 is imposed. As a result,
a.
buyers' total expenditure on the good decreases by $20.00.
b.
the supply curve will shift to the left so as to now pass through the point (Q = 40, P = $7.00).
c.
the quantity of the good demanded decreases by 20 units.
d.
the price of the good continues to serve as the rationing mechanism.
When the economy is producing at a quantity greater than its long-run aggregate supply:
A. we are experiencing a recession. B. the economy is experiencing greater economic growth. C. it is pushing some of its resources to operate beyond capacity. D. it causes a bubble to form in one of its major sectors.