A researcher discovered the adhesive that allows a piece of paper to be attached to a surface temporarily and then removed and reattached many times. It was many years before a use was found for this adhesive. Which of the following is true?
A. This is an example of an innovation only.
B. This is an example of an invention only.
C. The discovery represents an invention and the finding of a use for the adhesive represents an innovation.
D. The discovery represents an innovation and the finding of a use for the adhesive represents an invention.
Answer: C
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Refer to Figure 8.3. The marginal cost of the ninth basketball is A) less than $2. B) $2. C) $3. D) greater than $3.
When determining an appropriate congestion tax, economists would use which of the following elements of the economic way of thinking?
A) thinking at the margin B) making assumptions C) isolating variables D) all of the above
The economic gain that a positive externality provides to others is called:
A. an internal benefit. B. an external benefit. C. an external cost. D. an internal cost.