A positive externality
a. causes the product to be overproduced.
b. provides an additional benefit to market participants.
c. benefits consumers because it results in a lower equilibrium price.
d. is a benefit to a market bystander.
d
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Wobet is a small country that produces only steak and potatoes. Steaks have a price of $10 each and potatoes have a price of $1 each. Suppose that Wobet produces 10 steaks and 20 potatoes in 2010. Using ________, Wobet has GDP equal to ________
A) market value; 30 units B) a market basket; 30 units C) market value; $120 D) real value; $120 E) a price index; $120
Which of the following statements most accurately describes the role of banks in the United States between the Civil War and WWI?
a. The U.S., which had the largest economy in the world, also had the largest banks in the world. b. Banking reforms increased the ability of state banks to issue their own notes. c. Compared to state banks, national banks generally had higher reserve requirements and more restrictions on how they could handle their assets. d. Those who borrowed money at fixed interest rates gain significantly during deflationary periods.
A financial asset is
a. a unit of physical capital with a positive market value b. any asset that generates a stream of income c. a share in the ownership of a productive enterprise d. a form of money e. a promise to pay future income in some form
The Lorenz curve:
A. is an absolute measure of income inequality. B. is a relative measure of income inequality. C. has elements of absolute and relative measures. D. takes into account changes in the standard of living.