At the equilibrium price, deadweight loss is:
a. minimized.
b. zero.
c. maximized.
d. equal to the equilibrium price multiplied by the quantity exchanged.
b
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One reason that some whales were hunted close to extinction is that no one can claim ownership of a whale until it is killed. If property rights to the whale population were established:
a. then whales would surely be hunted to extinction. b. the owners would have the incentive to ensure a sustainable yield of whales, so the whale population could recover. c. no one would hunt whales. d. the price of whales would be kept artificially low so that trade in whales would become unprofitable. e. the whales would be hunted to extinction only when the price is high and it is profitable to trade in whales.
The Federal Reserve System is a(n)
a. corporation owned by its member banks. b. independent branch of the U.S. government. c. corporation owned by the government and member banks. d. agency created by presidential executive order.
When a commercial bank borrows from the Fed,
A) the reserves of the bank fall. B) the bank can make more loans. C) it must be because the bank is not meeting its reserve requirements. D) the money supply falls.
Samuelson and Solow argued that when unemployment is high, there is
a. upward pressure on wages and prices. b. upward pressure on wages and downward pressure on prices. c. upward pressure on prices and downward pressure on wages. d. downward pressure on wages and prices.