In which of the following situations would a positive externality most likely be involved?
A. Shawn is sitting at home one day when she gets a telephone call, informing her that she has won $10,000 in a contest she entered three months ago.
B. There are eight houses in the neighborhood where Rodney lives. Rodney likes nice-looking yards, and last week his neighbors began to beautify their yards.
C. Willy needs eight hours of sleep each night to feel good. Last night he got eight hours of sleep.
D. Patrick received an A on a biology exam. He is feeling better about his chances of getting admitted to medical school.
Answer: B
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Refer to the following graphs. Given an increase in aggregate demand from AD1 to AD2, which of the following statements is true?
a. Classical economists argue the Aggregate Supply (AS) curve would be vertical like that shown in graph (a).
b. Keynesian economists argue the Aggregate Supply (AS) curve would be horizontal in the short run like that shown in graph (b).
c. Keynesian economists argue the Aggregate Supply (AS) curve would be vertical in the long run like that shown in graph (a).
d. All of the above.
A comparative advantage is when a good can be produced at a(n) ________ cost in terms of other goods.
a. lower b. higher c. equal d. comparative
If a U.S. firm buys Chinese toys using previously obtained Chinese currency, then both U.S. net exports and U.S. net capital outflow decrease
a. True b. False Indicate whether the statement is true or false
Which of the following would provide a reasonable benchmark for how much you should pay monthly into a "real world" savings account?
What will be an ideal response?