Among the following examples, the one that best illustrates a public good is:
A. The laptops used by students in a college or university
B. The movies produced by Hollywood companies
C. The bike paths around a city or town
D. The airline tickets bought by vacationers
C. The bike paths around a city or town
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Under what circumstances is a merger unlikely to be approved?
What will be an ideal response?
Which of the following are among the effects of CFC usage?
a. increased cases of skin cancer c. urban smog b. acidification of surface waters d. all of the above
Assume a simple macroeconomic model. When inventories rise unexpectedly,
A. income is above its equilibrium value. B. income will rise until it reaches its equilibrium value. C. total spending is higher than total output. D. total output is less than spending.
Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment
would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following is an accurate verbal statement of the described relationship? A. There is no regular or dependable relationship between business investment and the interest rate. B. The amount of business investment is unaffected by changes in the interest rate. C. Investment spending by businesses varies inversely with the interest rate. D. Investment spending by businesses varies directly with the interest rate.