Positive outcome would be having a good time with your friend and negative consequences would be getting in trouble if caught and or banned from going to football games
The statement, 'lower interest rates are part of tight money policy' is false.
<u>Explanation:</u>
Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.
So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.
Answer:
The correct answer is option A.
Explanation:
A negative externality refers to the situation when the cost of production is borne by a third party which is not involved in the production process.
In case there is a negative externality present, the marginal social cost will be greater than the marginal private cost. The competitive price will be lower than the socially optimal price.
Since a third party partially bears the cost, the producer will be able to produce more than the optimal level. There will be a deadweight loss of social welfare.
Answer:
The correct answer is letter "B": Yellow dog contracts.
Explanation:
Yellow dog contracts are those provided by employers in which they and the new hires agree in employees not engaging any activity related to unions while they are under the company's payroll. Yellow dog contracts attempt to avoid the formation of labor unions so the organizations only will have the power in deciding employee benefits, compensations, and working conditions.
These types of contracts are considered illegal after the Norris-LaGuardia Act of 1932 was enacted.
