Which of the following is not an example of an externality?
A. Carbon dioxide from energy generation that adds to the worldwide long-term greenhouse effect.
B. Heat from a factory that makes the neighboring tomato patches more productive.
C. Acidic by-products of fossil fuel combustion that produce acid rain.
D. A defective part that causes an automobile to break down three months after purchase.
Answer: D
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Frictional unemployment increases when
A) real GDP decreases and the unemployment rate rises. B) the number of workers who quit one job to find another increases. C) discouraged workers drop out of the work force. D) workers are replaced by machines and the unemployed workers do not have the skills to perform new jobs.
If the government regulates the market in the above figure in a way to achieve efficiency, then ________ tons of paper will be produced and consumed
A) 0 B) 100 C) 200 D) None of the above answers is correct.