The term externalities refers to
A. The impact on markets of imported goods.
B. Black-market economic activity.
C. The inequitable distribution of income.
D. The costs or benefits of a market activity borne by a third party.
Answer: D
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As it relates to migration, self-selection is most likely to apply to:
A. Highly-skilled immigrants B. Low-skilled immigrants C. Highly-skilled domestic workers D. Low-skilled domestic workers
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
All of the following are sources of loanable funds EXCEPT
A) business investment. B) private saving. C) government budget surplus. D) international borrowing.
The Federal Open Market Committee (FOMC)
A) determines the tax policy of the government. B) influences the future growth of the money supply. C) oversees all transactions on the stock market. D) lends to the least credit-worthy customers.