If the magnitude of the external costs in an industry increased
a. The supply curve including external costs would increase
b. The efficient price would increase
c. The market price would increase
d. Both a and b are true
b
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (3) might represent
A. government salaries paid to school teachers. B. a state university's purchase of computers. C. property tax payments. D. social security payments to retirees.
The U.S. Postal Service expenditures are off-budget
a. True b. False
A Swiss watch company advertises its history of superior craftsmanship. The company thinks that this will
a. Make the demand for the product more elastic b. Make the customers more sensitive to the price c. Not impact the demand for their product d. None of the above
The rule of 72 implies that a country will double its income in about 4 years if its growth rate is:
A. 25 percent. B. 18 percent. C. 8 percent. D. 12 percent.