The "free rider problem" occurs in connection with
a. private goods.
b. both public and private goods.
c. goods that are not scarce.
d. public goods.
D
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If tastes for a good decreased and the price of a substitute good decreased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. we would not know which direction either prices or quantities exchanged would be altered without more information.
If economists estimate the price elasticity of demand to be 0.75 for good X and 1.25 for good Y, then the government can raise the most revenue by taxing good Y
Indicate whether the statement is true or false
If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:
A. $200,000. B. $80,000. C. $300,000. D. $20,000.
In the used car market, the less-informed party is the ________. In the health care market, the less-informed party is the ________.
A. buyer; seller B. seller; buyer C. buyer; government D. seller; government