When your neighbor's dog barks all night long, this is an example of a negative externality
a. True
b. False
Indicate whether the statement is true or false
True
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The most important way in which inefficiency occurs is
A. producing more military goods instead of civilian goods. B. limiting economic growth by limiting capital spending. C. unemployment of labor and other resources. D. producing outside the production possibilities frontier. E. All of the responses are correct.
Suppose a home owner is selling their home and they are aware that the basement has a severe drainage problem and the potential buyers do not have this information. This is an example of ________.
A) screening B) the principal-agent problem C) self-revelation D) asymmetric information
When economic profits are positive in a perfectly competitive industry,
a. we would expect the market supply curve to shift to the left as a result. b. we would expect the market supply curve to shift to the right as a result. c. we would not expect any change in the market supply curve to result. d. we would expect that the market demand curve to shift right as a result
The business cycle is the
a. relationship between unemployment and inflation. b. irregular fluctuations in economic activity. c. positive relationship between the quantity of money in an economy and inflation. d. predictable changes in economic activity due to changes in government spending and taxes.