Refer to the above figure. If real Gross Domestic Product? (GDP) is? $6 trillion, then unplanned business inventories will

Why are externalities called market failures? Are pecuniary externalities also an example of market failure?

What will be an ideal response?

Other things the same, if foreign residents desired to purchase more U.S. wheat

a. the exchange rate and net exports would rise. b. the exchange rate would rise and net exports would be unchanged. c. the exchange rate would fall and net exports would be unchanged. d. the exchange rate would fall and net exports would rise.

Which of the following summarizes the "incentive problem" with gift-giving that Professor Tabarrok discusses in the video?

A. Gift-giving reduces the incentives for people to rely on market transactions. B. When people choose gifts, they have little incentive to choose carefully. C. When people buy gifts, they have an incentive to overspend to send a signal that they are generous. D. People have little incentive to purchase a gift unless they expect a gift in return.

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a year. If doctors make $40,000 a year, what do nurses make?

A. $15,000 a year B. $25,000 a year C. $20,000 a year D. $10,000 a year