A good that has social costs that exceed private costs has a quantity that is
A) too high.
B) too low.
C) just right.
D) the best society can do.
Answer: A
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Define the following terms and explain their importance to the study of macroeconomics
a. the relationship between interest rates and velocity b. lags in stabilization policy c. rules versus discretion
The reason people can't have everything they want is because
A) people are selfish. B) scarcity exists. C) there is not enough economic growth in the world. D) none of the above
The game in the figure shown is a version of:
A. the prisoner's dilemma. B. a sequential game. C. a repeated game. D. the first-mover advantage.
The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad. B. stabilizing the exchange rate against external shocks. C. stabilizing the interest rate against foreign capital outflows. D. promoting long term economic growth.