Which of the following is the main reason for externalities?
A) The full cost of a transaction is not borne by the buyer/seller of the product.
B) Police enforcement of scalping is not uniformly enforced.
C) the lack of organized exchanges for all goods and services
D) The production of public goods uses up scarce resources.
A
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If there is no scarcity,
A) choices are no longer rational. B) all marginal benefits would equal zero. C) the opportunity cost of an action would be greater than its sunk cost. D) marginal cost of an action is greater than its marginal benefit. E) an action would have zero opportunity cost.
According to the crowding-out effect, expansionary fiscal policy will lead to
a. higher interest rates, an appreciated dollar, and reduced net exports. b. higher interest rates, an appreciated dollar, and increased net exports. c. reduced interest rates, an appreciated dollar, and reduced net exports. d. reduced interest rates, an appreciated dollar, and increased net exports.
When General Dwight D. Eisenhower ran for the presidency for the first time, he said he would
A. end the recession and end inflation. B. end the recession and end the Korean War. C. end inflation and end the Korean War. D. end the recession, the Korean War, and inflation.
Answer the following statement true (T) or false (F)
1) If the coefficient of cross elasticity of demand is positive, the two products are complementary goods. 2) An income elasticity coefficient of -1.8 means the product is a normal good. 3) A cross elasticity of demand coefficient of +2.5 indicates that the two products are substitutes. 4) We would expect the coefficient of cross elasticity of demand for DVD players and DVDs to be positive.