Briefly explain the similarities and differences of decision making by the market sector and the public sector
What will be an ideal response?
The similarities of the two sectors include the presence of opportunity costs, competition by serving individual interests, and an incentive structure. The main differences between decisions by the two sectors are that the public sector often makes decisions on goods at zero price, by use of force, and by a majority voting system instead of "dollar votes."
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Peanut butter and jelly are complements for many consumers. Consider the market for peanut butter. If there is an increase in the price of jelly,
A) there is a shift in the supply curve for jelly. B) the price of peanut butter rises. C) the quantity of peanut butter increases. D) the demand curve for peanut butter does not shift; instead there is a movement along it. E) there is a movement along the supply curve of peanut butter.
Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
The concept of derived demand indicated that the demand for a final good or service will be determined by the price of the inputs used to produce that final good or service
a. True b. False Indicate whether the statement is true or false
Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is
a. around four times a country with less than 20 percent of the population living near the coast. b. around ten times a country with less than 20 percent of the population living near the coast. c. around twenty times a country with less than 20 percent of the population living near the coast. d. around fifty times a country with less than 20 percent of the population living near the coast.