If people have identical tastes, then the economic rent created by a common property is
a. zero.
b. as large as possible.
c. positive, but not as large as possible.
d. negative.
a. zero.
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When potential GDP increases, the potential GDP line ________, and the aggregate supply curve ________
A) shifts rightward; shifts rightward B) shifts rightward; shifts leftward C) shifts leftward; shifts rightward D) shifts leftward; shifts leftward E) shifts rightward; does not shift
Federal funds are
A) funds owned by the federal government. B) funds owned by the Federal Reserve. C) bank reserves that are lent overnight between banks. D) bank reserves that are lent overnight by the Federal Reserve to banks.
When hiring additional workers, a firm operating in a perfectly competitive labor market will
A) have to offer higher wages to hire additional workers, but the old workers do not get the higher wage. B) have to offer higher wages to hire additional workers, and the old workers will also receive the new, higher wage. C) be able to hire additional workers without offering higher wages. D) be able to hire additional workers at lower wages because the new workers have been unemployed.
The Business Cycle Dating Committee, a part of the ________, officially decides when a recession begins and ends
A) federal government B) Bureau of Labor Statistics C) National Bureau of Economic Research D) Federal Reserve