A negative externality exists when
a. Jack buys a good from Bill, and this makes Bill worse off.
b. Jack buys a good from Bill, and this makes Jack worse off.
c. Jack buys a good from Bill, and this makes Todd better off.
d. Jack buys a good from Bill, and this makes both of them worse off.
e. Jack buys a good from Bill, and this makes Todd worse off.
e. Jack buys a good from Bill, and this makes Todd worse off.
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Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP remains the same and reserve-related (central bank) transactions becomes more positive (or less negative). b. Real GDP falls and reserve-related (central bank) transactions remains the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
When economists say that the supply for a product has decreased, they mean that the
A. product has become more expensive and thus consumers are buying less of it. B. supply curve has shifted to the left. C. product has become particularly abundant for some reason. D. supply curve has shifted to the right.