Positive externalities arise when
A) an unprofitable firm is shut down.
B) a profitable firm is regulated.
C) tax rates are reduced.
D) production of a good generates benefits that spill over to third parties.
Answer: D
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Which of the following is a macroeconomics topic?
a. wages of textile workers in the Northeast b. the cost of producing 10,000 bookcases c. the economy's annual growth rate d. market demand for fish e. effects of farm subsidies on food prices
Stock markets in England were started in the late:
A. Seventeenth century. B. Eighteenth century. C. Sixteenth century. D. Nineteenth century.
Based on the graph for saving incentives, a tax law change encouraging saving would ______.
a. create a higher equilibrium quantity of loanable funds exchanged
b. create a lower equilibrium quantity of loanable funds exchanged
c. have no influence on the equilibrium quantity of loanable funds exchanged
d. drive the equilibrium quantity of loanable funds exchanged to zero
Use the long-run model presented in Chapter 22 to answer this question. If there is a decrease in aggregate demand, and monetary policymakers counter the decrease in aggregate demand, what will be the impact on output and inflation? Explain.
What will be an ideal response?