In the model of public goods, when the government chooses public goods provision optimally
A) there is no public goods production.
B) public goods are provided in an amount equal to private goods.
C) the marginal rate of substitution of private goods for public goods equals the marginal rate of transformation.
D) GDP is maximized.
C
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Households will choose to save more if
A) income is expected to decrease in the future. B) current disposable income increases. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
Which of the following costs are part of a firm's opportunity costs? I. costs for resources bought in markets II. costs for resources the firm owns III. costs for resources supplied by the owner
A) I and II B) I and III C) I only D) I, II, and III
If a bank receives a new deposit of $10,000 . and the legal reserve requirement is 25 percent, then the potential new money that can be created by the banking system, including the initial deposit, is
a. $25,000 b. $2,500 c. $4,000 d. $40,000 e. $10,000
A market shortage is
A. A situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell. B. The result of a price floor. C. The amount by which the cost of production exceeds the price of a good. D. The amount by which the quantity demanded exceeds the quantity supplied at a given price.