Government's use of eminent domain is a solution to
A) the problem of negative externalities.
B) potential monopolization of a market.
C) the holdout problem.
D) the free-rider problem.
C
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Refer to Figure 19-11. The graph above depicts supply and demand for British pounds during a trading day, where the quantity is millions of pounds. In order to support a fixed exchange rate of $2.00 per pound, the British central bank must
A) buy 0.6 million pounds per trading day. B) sell 1.2 million pounds per trading day. C) buy 1.2 million pounds per trading day. D) sell 0.6 million pounds per trading day.
The enormous budget deficits of 2009 through 2011 meant that the federal government was borrowing upwards of $1.5 trillion per year. If that borrowing had limited the ability of the private sector to get financial capital for its purposes, economists would call this crowding out. There was
A. significant evidence this was a problem because interest rates were very low. B. little evidence this was a problem because interest rates were very low. C. significant evidence this was a problem because interest rates were very high. D. little evidence this was a problem because interest rates were very high.
Critics of the regulation of natural monopolies contend that:
A. regulation increases the incentive of firms to lower costs. B. regulated firms may use creative accounting to reduce costs, prices, and profits. C. when rates of return are based on the value of real capital, an uneconomic substitution of labor for capital may occur. D. the industry may "capture" or control the regulatory commission.
Which of the following is NOT part of the FOMC directive?
A. It specifies target ranges for money supply growth. B. It establishes short-term federal funds rate objectives. C. It lays out the FOMC's general economic objectives. D. It specifies who the chair of the Fed is.