Explain how one person getting a pneumonia vaccination creates an externality
What will be an ideal response?
A pneumonia vaccination directly affects the recipient, who is much less likely to develop a severe case of pneumonia, but since viral pneumonia is contagious, the vaccine also protects those who come in close contact with the recipient. This creates a positive externality for those people who do come in close contact with the vaccine recipient.
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Over the past 110 years, real GDP per person in the United States has grown at an average rate of about ________ per year
A) 1 percent B) 2 percent C) 5 percent D) 10 percent E) 7.5 percent
For an investment in a hybrid auto like the Toyota Prius, the car owner typically pays a higher initial price for the car but enjoys lower fuel costs for the life of the vehicle
The authors note that consumers tend to use discount rates that are too high when computing the net present value of these investment decisions. If this is true, consumers would tend to place too ________ emphasis on the initial purchase price and too ________ emphasis on the future fuel savings when computing the net present value of the investment. A) much, much B) little, much C) much, little D) little, little
On average, the greater the unexpected decline in aggregate demand
A) the weaker is the resulting deflation. B) the greater is the resulting deflation. C) the greater is the resulting inflation. D) the greater is the rise in the price level.
The historical record indicates that foreign aid has
a. played a major role in helping formerly poor countries grow rapidly and achieve high income levels. b. re-enforced corrupt governments and policies that stifle productive activities. c. helped poor countries escape counterproductive policies imposed by authoritarian political leaders. d. promoted economic growth, but slowed the movement toward political democracy.