A free rider is a person who:
a. is harmed by another's actions.
b. is subject to a negative externality.
c. receives benefits from someone else's action but does not pay for them.
d. pays less than the full value for a product.
e. won the state lottery.
c
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Low stock market prices might ________ consumers willingness to spend and might ________ businesses willingness to undertake investment projects
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this information, the firm is:
A) earning an economic profit of $600. B) earning an economic profit of $1,200. C) incurring a loss of $600. D) incurring a loss of $1,200.
The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
The relationship between the number of hours a student studies for an exam and the exam grade is most likely graphed as
A) a line sloping down from upper right to lower left. B) a line sloping down from upper left to lower right. C) a line sloping up from lower left to upper right. D) a line sloping up from lower right to upper left.