If children go to school and become productive members of society

A) a negative externality is created by the schools.
B) a positive externality is created by the schools.
C) no externality is created by the schools.
D) an externality is created that may be positive or negative.


B

Economics

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Compared to no supply-side effect, including a supply-side effect for the decrease in tax rates will cause the price level to increase ________ and real GDP to increase ________. A) more; less B) less; less C) more; more D) less; more

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Refer to Figure 3-2. A decrease in productivity would be represented by a movement from

A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.

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All else constant, which of the following statements best describes how the development of these programs has affected the retail market for new music CDs? A) Demand for CDs has decreased, causing equilibrium price and quantity to decrease. B) Demand for CDs has increased, causing equilibrium price and quantity to increase. C) Demand for CDs has decreased, causing equilibrium price to decrease and equilibrium quantity to increase. D) Demand for CDs has increased, causing equilibrium price to increase and equilibrium quantity to decrease.

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Under Alan Greenspan and Ben Bernanke, the Federal Reserve was successful in pursuing a ________ policy

A) preemptive B) inflation targeting C) exchange rate targeting D) monetary targeting

Economics