Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom's budget constraint is AC. He will have leftover income if he purchases the bundle represented by point
A. A.
B. B.
C. E.
D. D.
Answer: C
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Air pollution is an external cost because it
A) is a pollution of the external environment. B) is a cost not borne by the producer of the good. C) benefits no one. D) is not associated with resource use. E) is created only when production occurs.
Answer the following statements true (T) or false (F)
1. If member banks need to borrow reserves, they must do so through the discount window. 2. The discount rate at all Federal Reserve Banks is always identical. 3. The Federal Reserve System is completely independent of the government. 4. Raising the reserve requirement or the discount rate always decreases the money supply. 5. The Fed’s ability to influence the money supply through its open-market operations is independent of a commercial bank’s desire to make loans.
The motivations of buyers & sellers & their negotiation abilities have __________ in the price formation process
Fill in the blank(s) with the appropriate word(s).
The market and public sector are similar in that
A. there is competition among the participants in both sectors. B. the participants in both sectors react to incentives. C. the resources used in both sectors are scarce. D. All of these are true.