When residents surrounding an airport complain about noise from aircraft landings and takeoffs, the relevant economic analysis is that of
A. externalities.
B. equality-efficiency trade-off.
C. comparative advantage.
D. the cost decrease of the service sector.
E. the cost disease of personal services.
Answer: A
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The supply of and demand for bank reserves determines the
A) Treasury bill rate. B) prime rate. C) discount rate. D) federal funds rate.
In a free market economy, current consumption, saving and investment decisions
A) shape the future course of the national economy. B) are necessarily controlled by big businesses. C) require protection from foreign forces if individuals desire wealth accumulation. D) are controlled largely by the government.
Commercial banks are required by law to hold reserves. These reserves are specified as percentages of a bank's
A. total assets. B. total liabilities. C. checkable deposit liabilities. D. holdings of government securities.
A shift to the right in the demand curve for product A can be most reasonably explained by saying that:
A. consumer incomes have declined, and consumers now want to buy less of A at each possible price. B. the price of A has increased and, as a result, consumers want to purchase less of it. C. consumer preferences have changed in favor of A so that they now want to buy more at each possible price. D. the price of A has declined and, as a result, consumers want to purchase more of it.