A student that asks interesting questions during the lecture generates
A) positive externalities.
B) no externalities.
C) negative externalities.
D) an excludable good.
A
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When a minimum wage is ________, the firms' surplus and workers' surplus shrink, a deadweight loss ________, and resources are lost in job search
A) inefficient; arises B) inefficient; disappears C) efficient; arises D) efficient; disappears E) nonexistent; arises
Distinguish between a command-and-control economic system and a price system
What will be an ideal response?
To grow and prosper, less-developed countries must not:
a. invest in human capital. b. build a strong infrastructure. c. shift resources out of the production of consumer goods and into the production of capital goods. d. shift resources out of the production of capital goods and into the production of consumer goods e. improve the quality of the water supply
A commercial bank has $1,000,000 of outstanding demand deposits and actual reserves of $300,000 . If the required reserve ratio is 20 percent, what is the maximum amount of new loans the bank can extend?
a. zero b. $100,000 c. $300,000 d. $700,000