Negative externalities impose most of their costs:
a. directly on consumers of polluting processes.
b. whenever individual health is harmed in the production process.
c. only in large cities.
d. on individuals other than consumers of the polluting product.
d
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If the quantity of housing demanded ________ the quantity of housing supplied, scarce housing resources are allocated efficiently because the marginal cost of the housing ________ the marginal benefit
A) is more than; equals B) is less than; equals C) equals; is more than D) equals; is less than E) equals; equals
Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession
If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, the cyclically adjusted budget A) deficit was $210 billion. B) deficit was $110 billion. C) surplus was $110 billion. D) surplus was $10 billion.
Suppose expected inflation in the economy is 5%. Banks set nominal interest rates so they'll earn a 2% expected real return. Employers set nominal wages based on a 2% expected real wage increase. Suppose the nominal interest rate and nominal wages are determined this way, but actual inflation turns out to differ from the expected inflation rate. Calculate the actual real interest rate and the percent increase in the real wage for each of the following actual inflation rates: a) 2%; b) 5%; c) 10%.
What will be an ideal response?
When a perfectly competitive firm weighs price and marginal cost and no externalities exist, it is weighing the full benefits to ________ of additional production against the full costs to ________ of that production.
A. society; society B. buyers; sellers C. government; government D. sellers; buyers