A good is considered to be a public good if it
a. is a good produced by the government sector.
b. is both nonrival-in-consumption and nonexcludable.
c. benefits only a small group of consumers but is very costly to produce.
d. is a good whose production is financed by tax revenue.
B
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Which of the following is a factor in determining the demand for the dollar on the foreign exchange market?
i. the exchange rate ii. interest rates in the United States and other countries iii. the expected future exchange rate A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The majority of members of the Federal Open Market Committee are
A) Federal Reserve Bank presidents. B) members of the Federal Advisory Council. C) presidents of member banks. D) the seven members of the Board of Governors.
According to the text, the net public debt to Gross Domestic Product (GDP) ratio is currently about
A) 10%. B) 25%. C) 60%. D) 120%.
The basic purpose of economic models is to:
a. construct simplifying assumptions about the real world. b. explain reality in all its complexity. c. construct situations where controlled experiments can be carried out. d. provide explanations for, and predictions of the relationship between variables.