Fire protection and police protection may be provided more efficiently by the private sector than by the public sector.
Answer the following statement true (T) or false (F)
False
Fire and police protection are public goods; therefore, the private sector will underproduce these services.
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Which of the following is included in the M2 money stock?
a. bonds b. stocks c. gold d. savings-type accounts e. credit card balances
Which one of the following groups has a below-average incidence of poverty?
a. divorced or separated persons b. African Americans and other minorities c. families headed by a female d. persons between the ages of 35 and 54
Explain how a mutually beneficial trade is possible in a two-country, two-commodity model even when one of the countries has absolute advantage in the production of both the commodities.
What will be an ideal response?
Which of the following results if at a particular price level, the aggregate quantity supplied exceeds the aggregate quantity demanded?
A. Aggregate demand shifts to the right. B. A surplus causes the price level to fall. C. Aggregate supply shifts to the left. D. A surplus causes the price level to rise.