Which of the following is an example of detrimental externality?
a. A trailer's entry onto an overcrowded road that delays the movement of other vehicles.
b. Fall in demand for gasoline in the US softens the price of gasoline in the global market.
c. Government investment in energy generation from non-conventional sources.
d. Society devotes huge quantity of its scarce resources for vital innovative activity.
a
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If a change in government spending causes "crowding in" in an open economy, which of the following might increase in addition to consumption and investment?
A) unemployment B) net exports C) supply and demand D) stock of capital
Suppose you were working for Richstone's bakery and calculating whether the bakery was making a profit, considering the recent increase in rent. You have the following data: P = $20, AVC = $10, AFC = $12, and quantity of birthday cakes produced a day is 20 . You conclude that the bakery ends up at the end of the day with a
a. loss of $10 b. profit of $10 c. loss of $20 d. profit of $40 e. loss of $40