Recently, the State of Tennessee discovered chemical compounds in their drinking water which may cause cancer. Since Tennessee's drinking water comes from the Pigeon River in North Carolina, the source of these chemicals is the waste discharges of industrial paper plants in North Carolina. This is an example of a(n):
a. external cost imposed on the citizens of Tennessee by the industrial plants of North Carolina.
b. market failure where the market price of the output of these industrial plants does not fully reflect the social cost of producing these goods.
c. externality where the marginal social costs of producing these industrial goods differ from the marginal private costs.
d. all of these.
d
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As interest rates rise, more and more investments become profitable for a firm.
Answer the following statement true (T) or false (F)
Suppose that consumption spending is $3,200 billion, spending on durable goods is $800 billion, and spending on services is $1,800 billion. What does spending on nondurable goods equal?
A. $5,800 billion B. $600 billion C. $2,400 billion D. $3,200 billion E. There is not enough information to answer this question.
To be independent, a central bank must have:
A. control of its own budget. B. the chairperson serve as a member of the President's cabinet. C. the board members appointed for very short terms. D. its policies overturned only by the president.
If U.S. consumers increase their spending on electric cars by 10 percent, and 10 percent more electric cars are produced, this is known as the
A. majority rule. B. proportional rule. C. profit rule. D. government rule.