The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth. This layer protects humans from ultraviolet radiation, which causes skin cancer. Industry has been prohibited from using these substances in aerosol cans, but the government has been reluctant to ban their use altogether because of the serious
economic consequences. Economists analyze such problems and refer to them as
a. issues of unfairness.
b. examples of excess abstraction.
c. externalities.
d. comparative advantage issues.
e. examples of trade-offs between output and equality.
c
Economics
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The dividend-discount model predicts that stock prices:
A. will be high when interest rates are high. B. should be high when dividends are high. C. should be high when dividends are low. D. will be higher when the growth rate of dividends is low.
Economics
Assume that coffee and tea are substitutes. When the price of coffee increases
A) the supply of tea increases.
B) the demand for tea decreases.
C) the demand for tea increases.
D) the supply of tea decreases.
Economics