Question

Question 63 (1 point) Which of the following is an example of an external cost (or negative externality)?! The fall in the price of wheat because good weather produced a large crop O A company moves a factory to China, closing its Canadian factory. The fall in the price of gasoline because oil prices are falling, making Canadian oil industry workers jobless. Taxes are increased to pay for increased government spending during the pandemic. The increased chance of getting the coronavirus because other students in your class won't wear facemasks.

Answer 1

63. (E) the increased chance of getting coronavirus because other students in class won't wear face masks.

Negative externalities occur when the consumption or production (actions) of a good causes a harmful effect to a third party.

64. (B) Point B or C are equally desirable because they are both efficient.

The Production Possibility Frontier shows the maximum production that can be attained using the given resources and state of technology. Any point that lies outside PPF is unattainable using current resources and technology. Any point that lies inside PPF shows inferior points. All the points lying on the PPF are efficient.

65. (C) men and women tending to be found in different occupations

Occupational segregation is the distribution of workers across and within occupations, based upon demographic characteristics, most often gender.

66. (D) taking paid employment inbolves no opportunity cost because everyone needs money to live.

Opportunity cost is the cost of next best alternative foregone. Opportunity cost of paid leave is the company could use the day's salary in some productive investment. Paid leave is an idle investment.

67. (A) it is associated with decreased equality of opportunity.

The lowest section in economic inequality does not have access to equal resources of opportunities.

68. (D) some workers have good pay and working conditions while others have low pay and poor wrking conditions.

The dual labour market (also referred to as the segmented labour market) theory aims at introducing a broader range of factors into economic research, such as institutional aspects, race and gender. It divides the economy into two parts, called the "primary" and "secondary" sectors.

69. (A) people sometimes donate some money to pay for some public goods.

Public goods are funded by taxation and not donations.