In this graph for the marginal costs and benefits of pollution controls, the amount spent for pollution control greatly outweighs the benefits at ______.
a. Q1
b. Q2
c. Q*
d. both Q1 and Q2
b. Q2
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Fact: Churches and charities work hard to acquire more money to advance their projects. They happily accept money because
A) they are clearly selfish and materialistic. B) the transaction costs of donating money are generally lower than the costs of donating other goods and services. C) they tend to see money as the root of all evil, and by collecting it they can more effectively destroy it and change the system for the better. D) none of the above.
If the Federal Reserve Banks goal was to use open market operations to contract the economy it could move from:
A. MS1 to MS3
B. MS3 to MS4
C. MS4 to MS3
D. MS2 to MS3
Each additional round of the multiplier process will tend to be larger: a. the smaller the MPC
b. the greater the rate of income taxation. c. the less people save from increases in their incomes. d. the larger the fraction of each dollar of domestic income spent on imported goods. e. in each of the above cases.
Explain why a real exchange rate that does not equal one implies purchasing power parity does not hold.
What will be an ideal response?