When the government bans a good:
A. it makes acquiring that good illegal.
B. the cost of breaking the ban changes the trade-offs consumers face.
C. it is attempting to solve the nonexcludability problem.
D. All of these statements are true.
Answer: D
You might also like to view...
Why can't the nominal interest rate be negative?
What will be an ideal response?
In Figure 3-7 above, if the natural real GDP is $2500, AP = $250, and the change in "a" = change in I = change in NX = 0, then the natural real GDP could be attained with a
A) $250 decrease in T. B) $250 increase in G. C) $1250 increase in G. D) $500 decrease in T.
When there is an excess quantity supplied
A) the market is in equilibrium. B) quantity demanded is greater than quantity supplied. C) quantity demanded is less than quantity supplied. D) prices will remain stable.
If you hold a bond at a time when market interest rates are increasing, you will find that the bond's value has
a. remained the same since the interest payment remains constant b. increased c. increased only if the market interest rate exceeds the interest rate payable on the bond d. declined because you will receive a lower price when you sell the bond e. increased only if the interest payable on the bond exceeds the market interest rate