Government loan guarantees tend to have the effect of:
A. socializing losses and privatizing gains.
B. socializing gains and privatizing losses.
C. socializing both gains and losses.
D. privatizing both gains and losses.
Answer: A
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Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is TRUE?
A) Nigel has both an absolute and comparative advantage in bandana production. B) Nigel has both an absolute and comparative advantage in hair pin production. C) Nigel has neither an absolute nor comparative advantage in hair pin production. D) Nigel has neither an absolute nor a comparative advantage in bandana production.
Which of the following statements best describes a price floor?
a) A price that suppliers can be sure to receive for their output. b) A price floor will cause an excess supply of a good. c) A price higher than the market equilibrium price. d) All of the above.
In the short run, tax cuts that are intended to increase aggregate supply have
A. almost no effect on aggregate demand, and a small effect on aggregate supply. B. about an equal effect on both aggregate demand and aggregate supply. C. a much greater effect on aggregate demand than on aggregate supply. D. almost no effect on aggregate supply, and a negative effect on aggregate demand.
One characteristic of a public good is that it
A. can be easily subdivided into small units. B. always eliminates the free-rider problem. C. is available for consumption by only a few individuals at any particular time. D. can be consumed simultaneously by many individuals.