Checking account deposits are counted as part of the M1 money supply because
a. they earn interest income for the depositor.
b. they are widely used as a means of making payment.
c. banks hold currency equal to the value of their outstanding checking account deposits.
d. they are ultimately the obligations of the Treasury.
B
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Import restrictions create an incentive to smuggle
Indicate whether the statement is true or false
Social Security was established in
a. 1902 b. 1919 c. 1935 d. 1946
According to the above figure, equilibrium is at point
A. C. B. D. C. E. D. B.
Assume that emissions from electric utilities contribute to pollution in the form of acid rain. Which of the following describes how this affects the market for electricity?
A) The equilibrium in the market is not efficient; the marginal benefit from electricity is greater than the marginal social cost. B) A deadweight loss occurs; at equilibrium the additional social cost of production is greater than the additional benefit to consumers. C) The equilibrium in the market is not efficient; because of the cost of the acid rain, economic efficiency would be greater if more electricity were produced. D) The equilibrium in the market is not efficient; consumer surplus is equal to producer surplus.