Which of the following is an example of a negative externality?
a. A Japanese company begins to produce cars, which causes American workers to lose their jobs.
b. An employee of a chemical company spills acid on his arm, causing severe damage.
c. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary.
d. Sally buys coffee at McDonald's, spills some on her, and burns her arm.
e. Jack attempts to fix his roof, falls off, and breaks his leg.
c
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If the Fed wished to decrease GDP, it could
A) increase the reserve requirement or conduct an open market sale. B) increase the reserve requirement or conduct an open market purchase. C) decrease the reserve requirement or conduct an open market sale. D) decrease the reserve requirement or conduct an open market purchase.
Today's industrialized economies
a. have always specialized in capital intensive production b. have always specialized in heavy industry c. began their industrialization in labor intensive production d. began their industrialization in heavy industry then moved into light industry e. none of the above
Refer to the above figure. This firm is operating in the
A) long run since economic profits are greater than zero. B) long run since economic profits are less than zero. C) short run since economic profits are greater than zero. D) short run since economic profits are less than zero.
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's implicit costs are a. 0. b. $10,000. c. $15,000. d. $25,000.