Your economics professor has announced that he or she will assign final grades as follows: the top 20 percent of students will get an A, the bottom 20 percent of students will get an F, and everyone else will get a C. This grading scheme generates a positional externality because:
A. each student's final grade depends on his or her relative standing.
B. studying requires both time and effort.
C. society as whole will be better off when people are educated.
D. students will study hard no matter how the professor assigns final grades.
Answer: A
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The graph illustrates the supply of sweaters. Which of the following events will increase the quantity supplied of sweaters?
A) a rise in the price of a sweater B) a rise in the wage rate paid to the workers who make sweaters C) a rise in the expected future price of a sweater D) an increase in the number of sellers of sweaters E) a decrease in the number of sweater buyers
Capital resources include money and other financial assets
a. True b. False Indicate whether the statement is true or false
Economists view the “tragedy of the commons” as a problem of:
a. free riding. b. selfishness. c. exclusion. d. property rights.
Usury laws interfere with the _____________________.
Fill in the blank(s) with the appropriate word(s).