According to the Coase theorem, if private parties can bargain without cost, then the private market will solve the problem of externalities
a. True
b. False
Indicate whether the statement is true or false
True
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Required reserves for a commercial bank
A) are the minimum reserves that a bank must hold to back its deposits. B) are the reserves that a bank plans to hold in the bank's vault. C) are only the money used by the bank tellers. D) consist only of the bank's deposits at the Fed.
Economics is the study of
a. how to get rich by playing the stock market b. the best ways to reduce people's wants, given the scarcity of resources c. how rational government officials determine what goods should be produced d. money and why it is good e. how people use limited resources to try to satisfy unlimited wants
An increase in the money supply decreases the equilibrium interest rate and shifts the aggregate-demand curve to the right
a. True b. False Indicate whether the statement is true or false
Authors are allowed to be monopolists in the sale of their books in order to
a. promote a society in which people think for themselves and learn from whichever books they please. b. correct for the negative externalities that the Internet and television impose. c. satisfy literary advocacy groups that exercise their lobbying power. d. None of the above is correct.