Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The private demand for the vaccine is given by ________, and social demand for the vaccine is given by ________.
A. D2; MC
B. D2; D1
C. D1; MC
D. D1; D2
Answer: D
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The budget of an economy is said to be in deficit when: a. federal outlays exceed revenues
b. federal revenues exceed outlays. c. anticipated inflation rate exceeds its actual rate. d. there is a loss of value of a country's currency with respect to one or more foreign reference currencies. e. anticipated interest rate exceeds its actual rate.
The Phillips curve fails to provide a consistent explanation for macroeconomic performance in the United States in the 1960s
a. True b. False Indicate whether the statement is true or false
Under monopolistic competition, there are
A. so many firms that no one can control the price. B. low barriers to entry. C. high barriers to entry. D. identical products.
Which one of the following policies might the Fed initiate if it wanted to increase the money supply?
A. Sell government securities B. Increase the reserve requirement C. Increase the discount rate D. Decrease the reserve requirement