Explain why the buffalo almost became extinct while cattle did not, even though both provide similar goods for people
What will be an ideal response?
Cattle have been privately owned for most of human history while the buffalo was a common property resource. A person obtained private property rights on a buffalo by killing it, so they were overhunted. With private property rights, people have an incentive to husband the resource so there will be animals available in the future.
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As the expected profit from holding dollars ________, the quantity of ________
A) increases; dollars demanded increases B) increases; dollars demanded decreases C) decrease; foreign currency demanded decreases D) None of the above answers is correct.
As the interest rate increases, _____
a. the supply of loanable funds increases b. the supply of loanable funds decreases c. the quantity supplied of loanable funds increases d. the quantity supplied of loanable funds decreases
In a market economy, supply and demand are important because they
a. play a critical role in the allocation of the economy's scarce resources. b. determine how much of each good gets produced. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct.
Long term bonds have ________ interest rate risk
Fill in the blank(s) with the appropriate word(s).