According to cost-benefit analysis, a government project should be undertaken as long as the
A. Voters approve the project.
B. Opportunity costs exceed the welfare benefits.
C. Benefits exceed the opportunity costs.
D. Benefits equal the costs.
Answer: C
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Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service
Indicate whether the statement is true or false
Price ceilings are primarily targeted to help __________, while price floors generally benefit __________
a. producers; no one b. increase tax revenue for governments; producers c. increase tax revenue for governments; consumers d. producers; consumers e. consumers; producers
The U.S. government need never default on its debt because
a. it can easily nationalize banks, who own all the debt, and then owe it to itself. b. it can raise the funds it needs to repay by taxation, and it can print money to repay. c. it owes the debt to itself, and it can always ignore a demand for repayment. d. it can simply reduce spending enough to generate funds to repay its debt.
A reduction in the required reserve ratio has the instant effect of:
a. Increasing excess reserves. b. Increasing bank shareholders' equity. c. Decreasing bank shareholders' equity. d. None of the above is correct. e. Increasing the monetary base.