It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. The above situation is an example of:
A. an external economy.
B. the exclusion principle.
C. a spillover cost.
D. a spillover benefit.
Answer: C
Economics
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If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 2.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $0 B) $200 C) $600 D) $900
Economics
Which of the following is a stock variable:
a. Income b. Money supply c. Investment d. Profits
Economics