Which of the following is NOT a reason people save?
A. To reach consumption bundles in the future that would otherwise be unattainable
B. To protect against unforeseen expenses
C. To maximize their current consumption
D. To earn additional money on unused income
C. To maximize their current consumption
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The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. If Scott offers two swim tours per week, he incurs a marginal cost of
A) more than $30. B) $30. C) $20. D) $10. E) $2.
An example of statistical discrimination would be:
A. charging young drivers a higher premium than older drivers. B. charging homes near a lake higher premiums for flood insurance than those on a hill. C. assuming the food will be better at an Italian restaurant than a Chinese one in the Little Italy neighborhood of NYC. D. All of these are examples of statistical discrimination.
Which of the following best describes social benefits?
a. The external benefits to other members of society, ignoring the private benefits to market participants. b. The sum of external benefits and private benefits. c. External benefits minus benefits. d. Private benefits minus external benefits.
The central bank of Rudisia purchases government bonds by using the money that commercial banks keep as deposits with the central bank. It pays an interest of 2 percent on the deposits and charges the commercial banks about 2.5 percent per check for processing checks. It sends back the extra money to the government treasury. Therefore, it can be said that: a. the central bank of the country is
financially self-supporting. b. the central bank of the country acts as the treasurer of the government. c. the central bank of the country acts as the lender of the last resort of the government. d. the central bank of the country ensures that the deposits of customers are insured.