Externalities always involve the imposition of costs on parties outside an activity or transaction.
Answer the following statement true (T) or false (F)
False
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The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another. B. only two markets exist in every economy—input and output. C. income is lower when there is more spending on goods and services. D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
Capital is a flow of resources into the production of investment goods
a. True b. False Indicate whether the statement is true or false
An unanticipated reduction in the level of prices in the goods and services market, which results in a temporary increase in real wage rates, will
a. increase the natural rate of unemployment. b. reduce the natural rate of unemployment. c. result in an actual rate of unemployment that is less than the natural rate of unemployment. d. result in an actual rate of unemployment that is greater than the natural rate of unemployment.
Economists use the term ______ to refer to the ability of a single person (or a small group) to have a substantial influence on market prices
Fill in the blank(s) with correct word