A positive externality ________
A) gives rise to external benefits
B) leads to increasing returns to scale
C) imposes an additional cost on the society
D) leads to higher economic profit
A
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One of the ideas that found a permanent place in macroeconomics after Milton Friedman's presidential address to the American Economic Association in 1967 was that
A) there is not only a temporary tradeoff between inflation and unemployment, but a permanent tradeoff as well. B) the tradeoff between unemployment and inflation exists only in the long run, but not in the short run. C) people's expectations about economic events affect economic outcomes. D) a and b
Answer the following questions true (T) or false (F)
1. If a country has a comparative advantage in producing a product, it may or may not have an absolute advantage in producing that product. 2. If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway. 3. The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called comparative advantage.
John Maynard Keynes' most notable published work is entitled
A. Capitalism Doomed. B. The Communist Manifesto. C. Freakonomics. D. The General Theory of Employment, Interest, and Money.
Explain the difference between a money-market deposit account and a money-market mutual fund.
What will be an ideal response?