The increasing popularity of hotdogs in a food joint has pushed up their price, making it unaffordable for many students living in the surrounding areas. This is an example of a ________
A) positive externality
B) negative externality
C) pecuniary externality
D) free-rider problem
C
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All else constant, an increase in the amount of borrowing by the federal government would reduce the amount of money available for businesses to borrow to finance investment spending
Indicate whether the statement is true or false
Anything that increases the demand for foreign goods relative to domestic goods tends to ________ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is ________,
everything else held constant. A) depreciate; lower B) depreciate; higher C) appreciate; lower D) appreciate; higher
If the seller knows more about the good than the buyer knows, there exists:
A. an externality. B. asymmetric information. C. moral hazard. D. a public goods problem.
An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.