An example of the external costs due to automobile driving is
A) wear and tear on toll roads.
B) the opportunity cost of the driver's time.
C) air pollution due to exhaust fumes.
D) the cost of washing dirty cars.
Answer: C
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One of the challenges for development economists working in health care is to figure out a way to:
A. force doctors to practice good medicine. B. give incentives to families to make better health care choices. C. decrease the frequency of preventative medicine, such as immunizing children. D. All of these statements are true.
In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would
a. disagree with the protesters because these practices will help make both rich and poor countries richer. b. disagree with the protesters about free trade, but would agree with the protesters about corporate investment. c. disagree with the protesters about corporate investment, but would agree with the protesters about free trade. d. agree with the protesters.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Identify the six parts of the financial system.
What will be an ideal response?