The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is
A) a positive externality.
B) a negative externality.
C) a positive externality for some consumers and a negative externality for others.
D) not an externality.
D
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Other things the same, the wages in an occupation are likely to be higher the more
a. dangerous the job. b. prestigious the work environment of the occupation. c. desirable the location of the job. d. pleasant the working conditions.
A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because
a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment. b. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available from private saving. c. markets for government debt are fundamentally different from markets for private debt. d. of our assumption that the economy is closed.