Students arriving late to class are a potential negative externality because their tardiness may interrupt the instructor and distract students
Can you think of any way in which this externality could be curbed? That is, can you think of any methods that could be employedto internalize this negative externality?
There are many possible answers to this question. One method might be for the instructor to announce in advance that students will be docked a certain number of points from their grade for each incidence of tardiness.
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The downward-sloping portion of the marginal cost curve is the only portion that matters in production
Indicate whether the statement is true or false
The crowding-out effect stresses that
a. an increase in government expenditures will stimulate aggregate demand and, thereby, help to prevent recessions. b. an increase in taxes will restrain aggregate demand and, thereby, help to control inflation. c. additional government borrowing to finance a larger deficit will increase the demand for loanable funds, causing real interest rates to rise. d. a budget deficit is a highly effective tool with which to combat recessions. e. both a and d are correct.
Which of the following is correct?
a. NCO + C = NX b. NCO = NX c. NX - NCO = S d. NX + NCO = C
Table 3-1 Peanuts Corn (Bushels) (Bushels) 0 55 10 50 20 42 30 28 40 0 ? Suppose a farmer is currently producing 50 bushels of corn and 10 bushels of peanuts. According to Table 3-1, the opportunity cost of 10 additional bushels of peanuts is
A. 8 bushels of corn. B. 42 bushels of corn. C. 50 bushels of corn. D. impossible to determine from the information given.