Which of the following is an example of an externality?
a. Drug abuse affecting David's health.
b. Sara taking a break from work.
c. A transaction between two parties, affecting them alone.
d. Tom's smoking affecting his roommate's health.
d
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A period of sustained growth in output in an economy is referred to as a(n) _____
a. expansion b. contraction c. peak d. trough e. recession
Three economic questions must be determined in all societies. What are they? a. How much will be produced? When will it be produced? How much will it cost?
b. What will the price of each good be? Who will produce each good? Who will consume each good? c. What is the opportunity cost of production? Does the society have a comparative advantage in production? Will consumers desire the goods being produced? d. What goods will be produced? How will goods be produced? Who will get the goods produced?