Jacob pays $5,000 to paint his house because pollution from a nearby factory damaged the paint. To the factory, the $5,000 cost is
A) a private cost and not an external cost.
B) an external cost and not a private cost.
C) both a private cost and an external cost.
D) neither a private cost nor an external cost.
E) a private benefit because viewers will benefit from watching the extra hour of the show.
A
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What is the influence of the expected profit and the real interest rate on the amount of investment firms make?
What will be an ideal response?
If the marginal propensity to consume was 0.9, it would mean that:
A. consumers spend $9 out of every $10 of additional disposable income. B. consumers save $9 out of every $10 of additional disposable income. C. consumers spend $1 out of every $10 of additional disposable income. D. people should save more.
Which of the following is an example of a government program that provides cash assistance to the poor?
a. Temporary Assistance to Needy Families b. Medicaid c. food stamps d. public housing e. Head Start
Identify and explain the three ways we can use macroeconomic analysis.
What will be an ideal response?