When there are positive externalities in the consumption of a good:
a. marginal social benefit exceeds marginal private benefit.
b. the marginal social benefit curve lies below the private market demand curve.
c. the socially optimal level of output exceeds the private market equilibrium quantity.
d. public policy aims to lower the level of output below the private optimum.
a
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The median-voter model attempts to explain
a. why law partners can seldom agree on the division of costs b. why, in a democracy, the preferences of the typical voter often will dominate other choices c. why democracies can evolve into dictatorships d. elections in which candidates present widely different platforms e. conditions under which majority rule is better than market exchange
A government-imposed price ceiling has what effect on efficiency?
A. Consumer and producer surplus increases. B. Producer surplus increases. C. There is little dead weight loss. D. Consumer surplus increases.
Briefly discuss the organization of the Federal Reserve. Include in your answer a discussion of the individuals/groups who make decisions about monetary policy
What will be an ideal response?
Which of the following is the most liquid asset?
A. short-term treasury bonds B. currency C. shares of stock D. small denomination time deposits