The norms, values, and aspirations of a group are directly observable

The above figure depicts an economy

A) with an inflationary gap. B) with a recessionary gap. C) producing at full employment. D) None of the above answers is correct.

An externality arises when a person engages in an activity that influences the well-being of

a. buyers in the market for that activity and yet neither pays nor receives any compensation for that effect. b. sellers in the market for that activity and yet neither pays nor receives any compensation for that effect. c. bystanders in the market for that activity and yet neither pays nor receives any compensation for that effect. d. Both (a) and (b) are correct.