If production of a good creates external benefits, a competitive market will likely produce
a. less output than would maximize profit.
b. more output than would maximize profit.
c. less output than is efficient.
d. more output than is efficient.
C
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Excess reserves equal total reserves plus required reserves
a. True b. False Indicate whether the statement is true or false
Special-interest groups:
a. are more likely to be well-informed about "their" issue than the general public b. may consist of a congressional district c. may support policies that are harmful to the general public d. all of the above
Frictional and structural unemployment both exist
A. when the economy is in long-run equilibrium. B. only when the economy is in recession. C. when inflation becomes very high. D. only when the economy is at the peak of the business cycle.
An increase in the value of an asset over the price initially paid for it is a
A. dividend. B. capital gain. C. share of stock. D. promissory note.