When a driver enters a crowded highway he increases the travel times of all other drivers on the highway. This is an example of a negative externality
a. True
b. False
Indicate whether the statement is true or false
True
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In recording an accounting transaction in a double-entry system
A. the number of debit accounts must equal the number of credit accounts. B. there must only be two accounts affected by any transaction. C. there must always be entries made on both sides of the accounting equation. D. the amount of the debits must equal the amount of the credits.
The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to ________
A) marginal external cost B) marginal external benefit C) external cost D) external benefit
Which of the following is NOT true of a fixed payment loan?
A) The borrower is required to make regular periodic payments to the lender. B) The payments made by the borrower include both interest and principal. C) The borrower is left with a substantial unpaid principal at the maturity of the loan. D) A home mortgage is an example of fixed payment loan.
Coins and dollar bills are money in the form of:
a. barter. b. currency. c. capital stock. d. investment.