Why do market failures arise in case of public goods?
a. The quantity produced is much more than is actually required by the people.
b. The quality of these goods is not good enough.
c. The quantity produced is too less from the society's point of view.
d. The government wastes a lot of resources for producing a public good.
e. The users of such goods are required to pay a high price for these goods.
c
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars
In which of the following periods did average labor productivity in the United States grow the fastest?
A) 1929 to 1935 B) 1949 to 1973 C) 1973 to 1995 D) 1995 to 2008
Consumption spending is $22 million, planned investment spending is $7 million, actual investment spending is $7 million, government purchases are $9 million, and net export spending is $3 million. the following is not true?
What will be an ideal response?
Of the three primary tools the Federal Reserve uses to conduct monetary policy, the tool used most often is
A) open market operations. B) discount policy. C) setting reserve requirements. D) acting as the lender of last resort. E) check clearing.