Externalities are direct benefits or costs accruing to individuals or groups of individuals who were not participants in the activity.

In countries that have a high degree of employment protection as measured by the World Bank's Rigidity of Employment Index, approximately ________ of jobless workers have been employed for more than one year

A) 5% B) 16% C) 27% D) 43%

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S1 (point C)

If the price of motorcycle side cars (a complement to motorcycles) decreases, and the wages of motorcycle workers increase, how will the equilibrium point change? A) The equilibrium point will move from C to A. B) The equilibrium point will move from C to B. C) The equilibrium will first move from C to A, then return to C. D) The equilibrium point will move from C to E.