When someone does not have to pay for a good it:

A. means there is zero demand for the good.
B. is rational to overconsume.
C. is rational to underconsume.
D. is irrational to overconsume.


Answer: B

Economics

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In a two country and two product Ricardian model, a small country is likely to benefit more than the large country because

A) the large country will wield greater political power, and hence will not yield to market signals. B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices. C) the small country is more likely to fully specialize. D) the small country is less likely to fully specialize. E) the small country can raise wages.

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Fed policy since the early 1990s indicates that it is pursuing a policy of targeting the

A) monetary base. B) money supply. C) federal funds interest rate. D) exchange rate.

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In general, GDP per capita is highly correlated with alternative measures of quality of life

a. True b. False Indicate whether the statement is true or false

Economics