An externality is an unintended ____ imposed on ____ as a result of the ____
a. c or d
b. cost; sellers; negligence of others
c. cost; third parties; economic activity of others
d. benefit; third parties; economic activity of others
e. benefit; sellers; beneficence of others
a
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The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
The marginal propensity to consume is 0.75, marginal propensity to invest is 0.3, and the marginal propensity to import is 0.2. What is the size of the multiplier?
A) 6.67 B) 5.67 C) 4.67 D) 1.67
The exchange rate last month was $1= 3.2 Swiss francs. This month it is $1 = 3.12 Swiss francs. We can say that the value of the dollar
A) fell, causing net exports to increase and aggregate demand to rise. B) fell, causing net exports to decrease and aggregate demand to fall. C) increased, causing net exports to decrease and aggregate demand to fall. D) increased, causing net exports to decrease and aggregate demand to rise.
Which of the following bank assets would be categorized as secondary reserves?
A. Mortgage loans B. Cash C. Deposits at the Federal Reserve D. U.S. Treasury bills