Which of the following would be an external cost associated with the manufacture of cigarettes?
a. Price of a pack of cigarettes.
b. Price of leaf tobacco.
c. Cost to the government of the hospital expenses of indigent smokers.
d. Cost to the employer of the higher health insurance premiums due to the hiring of a smoker.
e. Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.
c
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If firms find that consumers are purchasing less than expected, which of the following would you expect?
A) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment rise. B) Aggregate expenditure will likely be greater than GDP. C) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment rise. D) Aggregate expenditure will likely be less than GDP.
The higher the interest rate:
A. the greater the level of inflation. B. the smaller the present value of a future amount. C. the greater the present value of a future amount. D. None of the statements associated with this question are correct.
Suppose you own a firm that produces widgets and is a monopoly. The market demand is given by the equation P = 50 - 2Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week. The marginal cost for the firm is 6Q. What is the single price monopoly output and price?
What will be an ideal response?
A merchandiser decides to sell corn to a Blair, NE location and gain $0.17/bu on the trade (after transport). He/she can obtain the corn for this opportunity at a net cost of $0.10/bu. The merchandiser who made these transactions, is taking advantage of an opportunity for _________:
a. Storage opportunities b. Monopoly gains c. Monopsony gains d. Arbitrage