When a good is nonexcludable, then individuals
A) will purchase the good for more than what it cost to produce the good.
B) can obtain the benefits of the good without paying for it.
C) have an incentive to become free riders.
D) will purchase more than the optimum amount.
E) b and c
E
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After Ben Bernanke became chair of the Fed in 2006, he
A) increased Fed transparency. B) abandoned inflation targeting. C) used "just do it" policy. D) increased the opacity of the policymaking.
Inflation is problematic if
a. it is less than the percentage increase in nominal income. b. it is less than the nominal return on saving. c. it equals the growth rate of real GDP in the long run. d. it distorts relative prices, causing a misallocation of resources.
If a bank has a reserve ratio of 8 percent, then
a. government regulation requires the bank to use at least 8 percent of its deposits to make loans. b. the bank's ratio of loans to deposits is 8 percent. c. the bank keeps 8 percent of its deposits as reserves and loans out the rest. d. the bank keeps 8 percent of its assets as reserves and loans out the rest.
A decrease in competition within an industry can result in
a. more efficient resource allocation. b. lower prices. c. a firm wielding economic and political power. d. increased output.