In macroeconomics, equilibrium is defined as that point at which
A. saving equals consumption.
B. planned aggregate expenditure equals aggregate output.
C. aggregate output equals consumption minus investment.
D. planned aggregate expenditure equals consumption.
Answer: B
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The First Bank of the United States was chartered by
a. the federal government. b. the state of New York. c. the city of New York. d. Suffolk County.
Suppose that everyone prefers to live in a society without poverty. Further suppose that some private charities are successful in reducing poverty. People who do not contribute to the charities
a. receive no external benefit from private antipoverty programs. b. decrease the reliance of individuals on antipoverty programs. c. can free ride on the generosity of others. d. are most likely to be in favor of government-sponsored programs.
When a good is nonexcludable, then individuals
A) will purchase the good for more than what it cost to produce the good. B) can obtain the benefits of the good without paying for it. C) have an incentive to become free riders. D) will purchase more than the optimum amount. E) b and c
The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:
A. the government can raise additional revenue. B. pollution is driven to zero. C. enforcement costs are eliminated. D. pollution reduction is accomplished in the least costly way possible.