In a free-market economy, a product which entails a positive externality will be:
A. Overproduced
B. Underproduced
C. Produced at the optimal level
D. Provided solely by the government
B. Underproduced
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GDP does not include which of the following activities?
A. Businesses installing anti-pollution equipment B. Households spending to enhance security of their neighborhoods C. Couples remodeling their own homes D. Families eating out in restaurants
Economists argue that the union wage advantage
A) has been estimated to be 100% in the private sector. B) in the private sector is a 4% increase in wages for union workers over nonunion workers. C) reached its height in 2000 in the private sector. D) has been close to zero since World War II in the private sector.
Each year, the president must submit a budget proposal to Congress by:
a. January. b. April. c. July. d. October.
If there is a recession, the Fed would most likely:
a. encourage banks to provide loans by lowering the discount rate. b. encourage banks to provide loans by raising the discount rate. c. restrict bank lending by lowering the discount rate. d. restrict bank lending by raising the discount rate. e. restrict bank lending by lowering the federal funds rate.