A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is
A) only a private cost.
B) only an external cost.
C) both a private cost and an external cost.
D) neither a private cost nor an external cost.
E) a private benefit because the neighbors get to hear the band.
B
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In the long run, a firm might experience rising per-unit cost due to:
a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing marginal returns.
Which of the following would cause prices to rise and real GDP to fall in the short run?
a. an increase in the expected price level. b. an increase in the capital stock. c. an increase in the money supply. d. an increase in taxes.
Financial institutions that receive most of their funds from the savings of the public are
A. thrift institutions. B. the fiduciary monetary system. C. the world index fund. D. universal banking.
The cost to firms of changing prices
A) is small even when there is rapid inflation. B) is called a menu cost. C) does not exist if inflation is perfectly anticipated. D) all of the above