Which of the Following Is the Best Example of a Macroeconomic

question 90

Multiple Choice

Which of the following is the best example of a macroeconomic externality?

• A) One person saving less without considering the effect on their retirement needs
• B) Many people saving more without considering the effect on unemployment
• C) One person starting a business without knowing whether the goods will sell
• D) One person spending more in order to help stimulate the economy

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Definitions:

Production Possibilities Curve

A graph that depicts the maximum feasible amounts of two commodities that a business can produce when those commodities compete for limited resources.

Technological Advance

The process of developing new technologies or improving existing ones to increase productivity or solve problems.

Soil Fertility

The ability of soil to provide essential nutrients to plants in adequate amounts for growth.

Overgrazing

The degradation of a grazing land, resulting from livestock grazing at a rate higher than the capacity of the land to regenerate.