How does a pure public good differ from a club good? In your answer, give an example of each type of good
What will be an ideal response?
A pure public good is nonrival (many people can use it simultaneously) and nonexcludable (anyone can consume the good without paying for it). An example is national defense. A club good is excludable, but nonrival. This means that people who do not pay for the good do not consume it, but one person's consumption does not affect the consumption of anyone else. An example is a toll road.
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Assuming all else equal, if the Fed is expected to adopt a contractionary monetary policy, ________
A) labor demand will increase B) inflation expectations will increase C) the long-run real interest rate will increase D) labor supply will increase
The discount rate is the interest rate
A) paid on time deposits. B) paid on funds banks borrow from other banks. C) paid on funds that depository institutions borrow from the Federal Reserve. D) that banks charge their "best" customers.
During his tenure at the helm of the Federal Reserve System, Paul Volcker reestablished ________
A) a system of fixed exchange rates B) the role of open market operations in the monetary policy actions of the Fed C) the credibility of the Federal Reserve as an inflation fighting institution D) the targeting of monetary aggregates, like the fed funds rate
Suppose the CPI in 1950 was 24.1 and the CPI in 1975 was 53.8 . When Ken's income rose from $10,000 per year in 1950 to $20,000 per year in 1970, Ken's standard of living improved between 1950 and 1970
a. True b. False Indicate whether the statement is true or false