If an activity results in a spillover benefit, then in a pure market economy the:
A. quantity produced is too low.
B. quantity produced is too high.
C. market supply is too high.
D. market supply is too low.
Answer: A
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Refer to the figure above. Which of the following is true?
A) Firm 2 should follow Strategy X if Firm 1 follows Strategy X. B) Firm 2 should follow Strategy Y if Firm 1 follows Strategy Y. C) Firm 2 should follow Strategy X if Firm 1 follows Strategy Y. D) Firm 1 should always follow Strategy X.
We can be more confident that standard deviation is a good measure of the risk of an asset (held in isolation) when
A) the number of different possible returns on the asset rises. B) the probabilities attached to the possible returns on the asset are less equal. C) the possible returns on the asset are distributed symmetrically around the mean. D) the asset has a longer maturity.
If the marginal propensity to save (MPS) is 0.25, the simple multiplier is _____
a. 25 b. 75 c. 5 d. 3/4 e. 4
Between 1980 and the early 1990s, the national debt
a. as a percentage of GDP, decreased b. remained fairly constant c. as a percentage of GDP, remained relatively unchanged d. as a percentage of GDP, increased e. declined