Which of the following offers the best example of an external cost?
a. The opportunity cost of money that an entrepreneur has invested in her business
b. The payments to owners of labor resources and coal inputs used by a coal-burning electric generating facility
c. The price paid by households for electricity service, including both the electricity itself and the cost of transporting the electricity through power lines
d. The harms to private property, open-access resources, and human health caused by pollution byproducts of electricity production
d
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An externality
A) may be positive or negative. B) means a rapidly rising cost borne by consumers. C) is the cost of producing a good outside the United States. D) is the indirect cost, the overhead, of producing a product.
If your bank receives a checkable deposit of $20,000 . and the banking system makes loans totaling $180,000 . the maximum possible, then the required reserve ratio must be:
a. 0.10. b. 0.20. c. 0.25. d. 0.40. e. 0.50.
If climate change starts creating earthquakes, storms, droughts and all manner of obstacles to production operations, the effects can be shown on effected production function graphs by
A. eliminating long run production functions because they are irrelevant. B. changing the curves of the isoquants to straight lines. C. lowering the short run production function and reducing the numbers on each isoquant. D. eliminating the increasing returns portion of the short run production function.
A perfectly inelastic supply curve can be shown graphically as a _____.
Fill in the blank(s) with the appropriate word(s).