When private benefits equal social benefits, it means that:
A. positive externalities are present in the market.
B. negative externalities are present in the market.
C. positive externalities are not present in the market.
D. no externality of any kind is present in the market.
C. positive externalities are not present in the market.
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Which of the following is NOT a complement for automobiles?
A. Gasoline to run the car B. Price of the car C. The insurance for the car D. The cost of the financing for the car
Exhibit 2-7 Production possibilities curve
For the economy shown in Exhibit 2-7 to operate at point C, it must:
A. be willing to lower the price of grain. B. use its given resources more efficiently than it would at point A. C. experience resource unemployment. D. experience an increase in its resources and/or an improvement in its technology.
The Required Reserve Ratio
An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of the investment component of GDP?
A. $0.8 billion B. $0.3 billion C. $0.4 billion D. $0.6 billion