Julia invested $3,000 at an annual interest rate of 5 percent. From last year to this year, there has been a 4 percent inflation rate. After a year, the purchasing power of her investment _____.

An negative externality is present whenever:

a. the private marginal cost of an activity exceeds the private marginal benefit. b. the private marginal benefit of an activity exceeds the private marginal cost. c. the social marginal cost of an activity exceeds the private marginal cost. d. none of the above

Deregulation of the airline and trucking industry has (i) resulted in considerable entry of new firms, and (ii) has forced unions in these industries to make large concessions on wages and working conditions

a. i and ii b. i but not ii c. ii but not i d. neither i nor ii