Which of the following statements concerning a pure public good is false?
A. It is impossible to exclude non-taxpayers from the enjoyment of the public good
B. All benefits associated with the production and use of a public good are received by the government
C. The availability of a public good to one person simultaneously makes it available to all members of society
D. The private sector does not have an economic incentive to produce a socially optimal amount of a public good
B. All benefits associated with the production and use of a public good are received by the government
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In which of the four market structures do sellers act as price takers?
A) Perfect competition B) Monopolistic competition C) Monopoly D) Oligopoly
Consider the bonds below. Which is subject to the greatest interest-rate risk?
A. A 20-year corporate bond B. A 30-year fixed-rate mortgage (fixed payment loan) C. A consol D. A Treasury bill
The ABC Commercial Bank has $5,000 in excess reserves and the reserve ratio is 30 percent. This information is consistent with the bank having:
A. $90,000 in outstanding loans and $35,000 in reserves. B. $90,000 in checkable deposit liabilities and $32,000 in reserves. C. $20,000 in checkable deposit liabilities and $10,000 in reserves. D. $90,000 in checkable deposit liabilities and $35,000 in reserves.
If the federal government had not bailed out the large financial institutions during the financial crisis of 2008-2009, the negative wealth effect would likely have been larger.
Answer the following statement true (T) or false (F)