Which of the following does not cause competitive market failure?
A. Detrimental externalities
B. Beneficial externalities
C. Poorly defined property rights
D. The cost disease
Answer: D
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Most power in the Federal Reserve System is held by the
A. president and Congress. B. Secretary of the Treasury, who appoints the members of the Board of Governors. C. Board of Governors of the system. D. member banks of the system.
If both nominal and real Gross Domestic Product (GDP) are increasing when the money supply is constant, than we can conclude that
A. interest rate has fallen. B. interest rate has increased. C. velocity has decreased. D. velocity has increased.
Assume that we are concerned about the existence of one firm (monopoly) in a market because of the potential for economic profits. If, however, there is free entry and exit, should our concerns change? Why or why not?
What will be an ideal response?
The U.S. system of property rights
(a) is strictly private. (b) is influenced by a mix of private and public forces. (c) does not permit governmental seizure of property under any circumstances. (d) does not permit the government to seize earned income through taxation.