Public goods, when left to the private market will be:
A. oversupplied.
B. overconsumed.
C. underconsumed.
D. undersupplied.
Answer: D
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The gross domestic product of Richland during a particular year was $672,500
If the expenditure on consumption during that year was $220,000, the expenditure on investment was $250,000, the expenditure incurred by the government was $100,000, and exports was $182,000, calculate the value of imports. A) $40,000 B) $79,500 C) $100,750 D) $21,500
If a bank borrows $1,000 from the Fed and lends it out, the bank sets in motion a process that will result in an expansion of the money supply by a multiple of that $1,000
a. True b. False Indicate whether the statement is true or false
If you were the Chairman of the Fed and faced inflation, you would most likely
a. encourage commercial banks to provide loans by buying government securities b. encourage commercial banks to provide loans by raising the discount rate c. encourage commercial banks to provide loans by selling government securities d. restrict commercial bank lending by selling government securities e. restrict commercial bank lending by lowering the federal funds rate
The greater the elasticity of demand, the smaller the deadweight loss of a tax
a. True b. False Indicate whether the statement is true or false