Consider leaf burning that generates negative externalities. The private cost is
a. less than the external cost
b. greater than social benefit
c. understated by the amount of the social cost
d. less than the social cost
e. shared with third parties
D
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The supply of money is determined by the Federal Reserve and is dependent on the demand for money
Indicate whether the statement is true or false
Unions try to raise wages mainly by directing
A. the demand for labor. B. the supply of labor. C. both the demand for labor and the supply of labor. D. neither the demand for labor nor the supply of labor.
Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516If this demand schedule were graphed, we would find that
A. its slope diminishes as we move southeast down the curve. B. its slope is constant throughout. C. its slope diminishes as we move northwest up the curve. D. the data are inconsistent with the law of demand.
Real consumption is a function of real disposable income, but the simple Keynesian model uses real GDP instead of real disposable income. This is appropriate since
A) we cannot measure either exactly and the purpose of the exercise is theoretical only. B) real disposable income tends to move proportionately with real GDP. C) real disposable income is a fixed percentage of real GDP. D) real GDP is a fixed percentage of real disposable income.