The asset demand for money:
A. is unrelated to both the interest rate and the level of GDP.
B. varies inversely with the rate of interest.
C. varies inversely with the level of real GDP.
D. varies directly with the level of nominal GDP.
B. varies inversely with the rate of interest.
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A negative externality clearly occurs when
A) a person's action unintentionally benefits other people. B) a person behaves in the public interest. C) a person's action unintentionally imposes costs on other people. D) a person couldn't care less about anybody else.
If a perfectly competitive firm charges more than the market price, then it loses all of its customers
a. True b. False Indicate whether the statement is true or false
Mutually beneficial international trade between two countries depends on
a. each country having an absolute advantage in the production of a different good b. one country being worse (requiring more resources) than the other in the production of every good c. at least one country having a zero opportunity cost in the production of at least one good d. one country being relatively better at producing a good (which makes the other country relatively worse at it) e. one country being relatively better at producing all goods
Pete throws leftover bread onto his front lawn because he enjoys watching the pigeons feeding. His neighbor John is not happy about the pigeons, since they leave a mess on his property. This is an example of a nice gesture causing a
a. negative externality b. public good c. positive externaility d. third-party benefit e. free-rider outcome