If the economy relies entirely on the market mechanism to answer the WHAT, HOW, and FOR WHOM questions, it tends to
A. Overproduce goods that yield external benefits and underproduce those that generate external costs.
B. Underproduce goods that yield external benefits and overproduce those that generate external costs.
C. Overproduce goods that yield external benefits and overproduce those that generate external costs.
D. Underproduce goods that yield external benefits and underproduce those that generate external costs.
Answer: B
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The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What would be the total increase in loans at this bank if all excess reserves were loaned out?
A) $528 million B) $352 million C) $232 million D) $0
Information on money growth is available to the public with ________ lags, causing difficulty for the ________ of the New Classical approach
A) long, Friedman but not Lucas version B) long, Lucas but not Friedman version C) long, Friedman and Lucas versions D) short, Friedman and Lucas versions E) short, Friedman but not Lucas version
The market-clearing price is:
a. the price at which the market is in equilibrium. b. the price at which mutually beneficial trade take place. c. the price at which sellers earn the maximum profit. d. the price at which consumer surplus is zero.
Today the great divide between the haves and have-nots is a _______________.
Fill in the blank(s) with the appropriate word(s).