How is the market demand for public goods derived?
What will be an ideal response?
To arrive at the market demand for public goods, we add up the amounts that individual households are willing to pay for each potential level of output.
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A debtor nation is a country that
A) during its entire history has consistently run a capital account deficit. B) borrows more from the rest of the world than it lends to it. C) lends more to the rest of the world than it borrows from it. D) during its entire history has invested more in the rest of the world than other countries have invested in it. E) during its entire history has borrowed more from the rest of the world than it has lent to it.
The federal funds interest rate
a. can be raised or lowered by the Federal Reserve to regulate the volume of loans to banks. b. is administered by the Open Market Committee. c. increases when the fed conducts open market purchases. d. is set by Congress. e. none of the above.
A player's best response is:
A. a strategy that provides him with a minimum payoff, assuming that other players behave in a specified way. B. a strategy that provides him with the highest possible payoff, assuming that other players behave in a specified way. C. a strategy that provides him with some payoff defined by a probability. D. None of these is correct.
A fair distribution of income for the U.S. economy is
a. not an economic issue b. defined by the Department of Agriculture c. a positive economic question d. a normative economic question e. a state and local issue but not a national one