National defense is considered a public good because there appears to be no limits to the nonrivalry-in-consumption characteristic, and exclusion of nonpayers is impossible. Are there any other goods that so perfectly meet both public goods criteria?
Perhaps. Beaches, parks, and public swimming pools all can become overcrowded. It is also possible to exclude (though it may be costly) nonpayers from most public goods, for example, highways. One example that comes close to national defense, however, is produced in the private sector. A radio broadcast never becomes congested, and once it is produced, it is virtually impossible to prevent anyone from consuming it.
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Tastes for perfect complements are both homothetic and quasilinear.
Answer the following statement true (T) or false (F)
A duopoly occurs when ________
A) there are only two producers of a particular good competing in the same market B) there are two producers of two goods competing in an oligopoly market C) there are numerous producers of two goods competing in a competitive market D) the one producer of two goods sells the goods in a monopoly market
A change in interest rates ________, while a change in income ________ the real money demand schedule
A) decreases; increases B) has a large effect on; has no effect on C) moves the economy along; shifts D) shifts; moves along
Suppose the banking system holds no excess reserves. If the required reserve ratio is 0.10 and the money multiplier is 2.5, what is the value of the currency-deposit ratio?
What will be an ideal response?