For which of the following goods will the free rider problem arise?
a. Private golf course
b. Cable television
c. Privately owned apartment
d. National defense
e. Movie theatres
d
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Spending on items other than consumption represents about what percent of total output of goods and services?
A. 20 percent B. 30 percent C. 40 percent D. 60 percent
When the nominal dollar interest rate ________, money demand will ________, and the general price level will ________
A) increases; decrease; increase B) increases; increase; increase C) increases; decrease; decrease D) increases; increase; decrease E) decreases; increase; increase
A monopolistically competitive firm has the free entry characteristics of ________ and the price setting characteristics of ________
A) an oligopolistic market; perfect competition B) perfect competition; a monopoly C) a monopolistic market; a cartel D) perfect competition; perfect competition
Which of the following statements about the Fed is not true?
a. It serves as the bankers' bank for member banks. b. It can, and on occasion does, control interest rates. c. It uses open market operations to control the economy's money supply. d. It changes the legal reserve requirement less frequently than it changes the discount rate. e. It changes the legal reserve requirement more frequently than it changes the discount rate.