What is an externality?

a) the impact of society's decisions on the well-being of society
b) the impact of a person's actions on that person's well-being
c) the impact of a person's actions on the well-being of a bystander
d) the impact of society's decisions on the well-being of one person in that society

Answer: c) the impact of a person's actions on the well-being of a bystander

Economics

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If the minimum wage is set above the equilibrium wage, a supply and demand diagram of the low-skilled labor market will show unemployment as

A) a vertical distance. B) a horizontal distance. C) the area of a rectangle. D) the area of a triangle.

Economics

Refer to Figure 4-1. What is the total amount that Kendra is willing to pay for 2 ice cream cones?

A) $1.50 B) $3.00 C) $5.50 D) $6.50

Economics