Which term refers to a situation where an exchange between a buyer and a seller affects a third party, who is not part of the exchange?
a. Externality
b. Social cost
c. Market failure
d. Economic cost
a. Externality
An externality occurs when an exchange between a buyer and a seller affects a third party, who is not part of the exchange
Economics
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When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion
When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $800 billion. A) 2.0; 4.0 B) 0.4; 0.2 C) 0.2; 0.4 D) 4.0; 8.0 E) $400 billion; $800 billion
Economics
The real internal rate of return on a college education is about
A) 0%. B) 2.5%. C) 6.9%. D) 15%.
Economics