The problem of excess pollution mainly occurs because of
A) asymmetric information.
B) a positive externality.
C) a negative externality.
D) a monopoly.
Answer: C
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The following table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase.CPUGHzTotal BenefitMarginal BenefitTotal CostsMarginal Costs2.0$1,000 $900 2.5$1,400 &1003.0 $300$1,200 3.5$1,900 &1,500 4.0$2,000 &400The total cost of a 2.5GHz computer is:
A. $200. B. $900. C. $1,000. D. $100.
Typically, the unemployment rate ________ during a recession and ________ during an expansion.
A. rises; does not change B. rises; falls C. rises; rises even more D. falls; rises
Use the following reserve-requirements table to answer the next question.Type of DepositReserve RequirementCheckable deposits $7.8 - $48.3 million3%Over $48.3 million10Noncheckable personal savings and time deposits0If a bank has $60 million in savings deposits and $40 million in checkable deposits, then its required reserves are
A. $1.8 million. B. $1.2 million. C. $3 million. D. $30 million.
When a market is efficient:
A. total surplus is zero. B. there is no exchange that can make anyone better off without someone becoming worse off. C. a central planner must be involved. D. an increase in price will reduce the deadweight loss.