The amount of income left after an individual pays taxes to the government is called disposable income

The Ricardian model can be simplified and made more explanatory by assuming that there is only one resource used in producing goods. What did Ricardo assume the resource was?

a. capital b. technology c. labor d. loanable funds

Which of the following episodes would most likely contain an externality?

A) You cannot afford to buy groceries. B) You decide to grow your own vegetables in your backyard where no one else can see them. C) You decide to grow flowers in your front yard where everyone else can see them. D) You eat all the vegetables you grow yourself.