An externality is
A. a third-party benefit or cost that is associated with the production of a good.
B. transaction costs.
C. government intervention in the markets.
D. when external forces such as war or flood affect the market.
Answer: A
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According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
Each additional round of the multiplier process will tend to be larger: a. the smaller the MPC
b. the greater the rate of income taxation. c. the less people save from increases in their incomes. d. the larger the fraction of each dollar of domestic income spent on imported goods. e. in each of the above cases.
According to the law of demand,
a. there is a positive relationship between quantity demanded and price b. as the price rises, demand will shift to the left c. there is a negative relationship between quantity demanded and price d. as the price rises, demand will shift to the right e. as the price rises, consumers will continue to purchase the same quantity of the good
Which statement is true?
A. In 1911 the Supreme Court decided to break up the oil and tobacco trusts. B. The rule of reason today is partially in force. C. Until the ALCOA case, the Supreme Court generally held that bigness was all right as long as the company wasn't bad. D. All of the statements are true.