Which one of the following is an example of an external cost?
A) the cost to attend college
B) labor costs to a firm
C) emissions from a factory
D) a house payment owed by a friend
C
You might also like to view...
Which of the following is a final good or service?
A) the CPUs purchased by Dell to be used in their computers B) the fertilizer purchased by Royal Lawn and Landscape C) the computers purchased by Office Depot for sale to its customers D) the grilled chicken purchased by Taco Bell for use in their burritos E) a new replacement muffler installed by Midas Mufflers
Countries gain from specializing in producing goods in which they have ________ and trading for goods in which other countries have ________
A) a comparative advantage; an absolute advantage B) an absolute advantage; an absolute advantage C) an absolute advantage; a comparative advantage D) a comparative advantage; a comparative advantage
Suppose we were analyzing the Turkish lira per euro foreign exchange market. If The Euro-Area's tax level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing an appreciation of the euro. b. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro. c. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro. d. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro. e. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.