If public goods were marketed like private goods, then
A. Public goods would be overproduced.
B. The economy would be outside the production possibilities curve.
C. The optimal mix of output would occur at the market equilibrium.
D. There would be market failure.
Answer: D
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In 2008 the fall in the value of the stock market decreased people's wealth. As a result of this change alone, the supply of loanable funds
A) did not change, and there was a downward movement along the supply of loanable funds curve. B) did not change, and there was an upward movement along the supply of loanable funds curve. C) decreased. D) did not change, and there was no movement along the supply of loanable funds curve. E) increased.
Describe the role of uncertainty at the beginning of and in the unfolding of a financial crisis
What will be an ideal response?
Competitive pressure in the insurance market will, in general,
A. make insurance premiums attractive to low risk drivers. B. induce risky drivers to self-insure. C. induce the least risky drivers to self-insure. D. make insurance premiums unattractive to drivers who are much riskier than average.
Judging from the production possibilities curve, the production of 8 units of housing and 60 units of food would be _____.
a. efficient
b. presently unattainable
c. inefficient
d. the best combination