Public goods have two distinct features: nonexclusiveness and nonrivalry
Indicate whether the statement is true or false
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Reserve requirements on bank deposits are set by
A) the SEC. B) the Federal Reserve board of governors. C) the Federal Reserve district banks. D) Congress.
An example of exclusive dealing occurs when
a. one individual serves on more than one board of directors b. one individual serves on only one board of directors c. a producer sells spark plugs to a car manufacturer with the understanding that the manufacturer will buy spark plugs only from that producer d. the seller offers a good for sale to an individual (or a limited group) on substantially better terms than is available to the general public e. a producer of spark plugs requires that customers also purchase rotors when they buy spark plugs
The equilibrium price of a good is:
(a) The price with which everyone is unhappy. (b) The price at which the quantity demanded and quantity supplied of a good are equal. (c) The price set by the regulators in the economy. (d) Both (b) and (c).
A strike
A. hurts the firm's management and shareholders but not the union members. B. is always in the firm's best interest. C. is never in the best interest of the rank and file. D. can be a rational response during the union-firm negotiation process. E. is a Pareto optimal outcome.