Which of the following is NOT an example of an externality?

A. The neighbor's wind chimes interfere with your sleep.
B. A firm lays off 100 workers.
C. Cancer-causing chemicals are dumped into the drinking water supply of a city.
D. A cookie company emits a wonderful aroma in the air that makes people smile.


Answer: B

Economics

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If V in the equation of exchange is constant, an increase in M will necessarily increase

A. P. B. Q. C. Both P and Q. D. P times Q.

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An indifference curve shows the combinations of two goods that yield the same level of utility.

Answer the following statement true (T) or false (F)

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Which factor of production includes crude oil deposits?

A) physical capital B) human capital C) land D) entrepreneurship

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