The economy's marginal social benefit curve for a public good is obtained by
A) horizontally summing each individual's demand curve.
B) horizontally summing each individual's marginal benefit curve.
C) vertically summing each individual's marginal benefit curve.
D) averaging each individual's marginal benefit curve.
C
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Which statement about the ownership of the Fed is true?
a. The Fed is publicly owned by the citizens of the United States. b. The Fed is owned by the Federal Reserve Board of Governors. c. The Fed is privately owned by member banks. d. The Fed is owned by the U.S. government.
Unemployment and inflation are:
A) not relevant in the U.S. economy today. B) major topics in macroeconomics. C) unique only to capitalistic economies. D) very important in the study of microeconomics.
The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q d , where Q d is the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information we can say that:
A. if pizzas were free, people would consume 800 per week. B. more pizzas will be purchased at a high price than at a low price. C. if the price of pizzas is $6, then 150 will be purchased. D. 50 fewer pizzas will be purchased per week for every $1 increase in price.
Under a floating exchange-rate regime with a low degree of capital mobility, an expansionary fiscal policy will most likely create pressure on
A. the central bank to expand the money supply. B. the government to impose capital controls. C. foreign central banks to expand their money supplies. D. the domestic currency to depreciate.