If children go to school and become productive members of society,
A) a negative externality is created by the schools.
B) a positive externality is created by the schools.
C) no externality is created by the schools.
D) an externality is created that may be positive or negative.
B
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Critics of the "limits to growth" thesis argue that:
A. clean air and water is a luxury good and the more economically developed a country becomes the easier it will be to keep the environment clean. B. economic growth will always take the form of more of what we have now, rather than newer, better, and cleaner goods and services. C. the market is not capable of adjusting to shortages of resources. D. government action spurred by political pressure is the best way to avoid the depletion of natural resources and pollution of the environment that results from economic growth.
According to the infant industry argument for trade protectionism
A) new industries are capable of competing with established rivals. B) trade barriers must be used to protect domestic workers. C) new industries need to be shielded from competition in the early stages of learning by doing. D) tariffs imposed to aid new industries should never be removed.
Which of the following could cause nominal GDP to increase and real GDP to decrease?
A) The price level falls and the quantity of final goods and services produced falls. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level rises and the quantity of final goods and services produced rises.
The maximum price that a buyer is willing to pay for a good measures his
A) consumer surplus. B) marginal benefit. C) willingness to pay. D) producer surplus.