In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that:
a. existing wells have negatively sloped MC curves.
b. existing wells and new wells are owned by different people.
c. existing wells and new wells are owned by the same people.
d. there is a discrepancy between private and social marginal costs.
d
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Which of the following statements is true?
A) Defending an overvalued currency is easier than defending an undervalued currency. B) Defending an undervalued currency is easier in the short run than in the long run. C) The nominal exchange rate is the ratio of the same basket of goods in two countries. D) The real exchange rate is calculated by dividing the nominal exchange rate by the inflation rate.
Schooling is subsidized in the United States in part
A) so that the golden rule capital level can be reached. B) because otherwise people would not get educated. C) because there is a constitutional right to education. D) because there is a positive externality from schooling.
Which of the following statements is true of open-market operations?
a. Open-market operations involve clearing checks b. Open-market operations involve lending money to member banks. c. Open-market operations involve accepting deposits from member banks. d. Open-market operations involve the Fed's purchase and sale of government securities. e. Open-market operations involve the Fed's purchase and sale of foreign exchange.
The sub-discipline of economics that focuses especially on individual markets is:
a. normative economics. b. positive economics. c. microeconomics. d. macroeconomics. e. econometrics.