If a positive externality is associated with the purchase of smoke detectors:
A. the marginal social benefit of smoke detectors exceeds their price.
B. more than the efficient quantity of smoke detectors will be sold.
C. the marginal social benefit of smoke detectors equals their price.
D. the marginal social benefit of smoke detectors is zero.
Answer: A
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U.S. unemployment as a result of freetrade agreements such as NAFTA
a. should be taken much more seriously, and workers should be offered assistance. b. is a temporary phenomenon to which the economy will adjust within a few years. c. results in a shift into lower productivity jobs such as hamburger flipping. d. results in a shift into lower productivity jobs such as hamburger flipping and is a temporary phenomenon to which the economy will adjust within a few years.
What is the real GDP in year 2 using base year 2?
A) $418. B) $300. C) $360. D) $338.