When a reduction in the price of a good allows a consumer to purchase more of all goods, this effect is called the:

The noise inflicted on bystanders by users of chain saws, lawn mowers, and motorcycles is an example of

a. a positive externality b. a public good c. nonexcludability d. marginal private benefit exceeding marginal social benefit e. marginal social cost and the free-rider problem

Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year (so the price of shoes rose to $110), your purchase of the shoes would

a. make you an inflation winner because you gained $5 by borrowing rather than waiting the year to buy the shoes b. make you an inflation loser because you paid $5 more than you should have for the shoes c. not be affected at all by the inflation rate because the shoes were already purchased d. be valued at $100 e. be valued at $110 multiplied by the inflation rate