Another term for externality is:
a. attractive nuisance.
c. spillover.
c. pollutant.
d. partnership.
c. spillover.
Because externalities that occur in market transactions affect other parties beyond those involved, they are sometimes called spillovers. Externalities can be positive or negative, depending on the points of view of those involved.
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The above figure shows the U.S. market for flip-flops. When there is no international trade, the U.S. price is ________ per flip-flop and the U.S. quantity is ________ flip-flops
A) $14; 300,000 B) $14; 500,000 C) $14; 700,000 D) $12; 700,000 E) $12; 300,000
If the poor cannot afford proper medical treatment, an economist, for reasons of efficiency, would favor
A. giving the poor added income to spend as he or she sees fit. B. paying doctors bonuses to treat the poor. C. paying the medical bills of the poor. D. giving the poor “medical stamps.”
The sample average is a random variable and
A) is a single number and as a result cannot have a distribution. B) has a probability distribution called its sampling distribution. C) has a probability distribution called the standard normal distribution. D) has a probability distribution that is the same as for the Y1,..., Yn i.i.d. variables.
If the federal government balanced its budget, its tax revenues would be equal to government expenditures.
Answer the following statement true (T) or false (F)