Market economies produce outcomes that
a. are virtually ideal in all respects.
b. are inferior to most other systems.
c. are, in some respects, far from ideal.
d. are virtually indistinguishable from command economies.
c
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The above table shows some cost data for Tracey's Tents. What is the marginal cost of the 3rd tent?
A) $25 B) $20 C) $70 D) $120
In the figure above, if the government provides a subsidy to colleges of $6,000 per student per year, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year
Loan guarantees provided by the government for specific private-sector investments tend to:
A. Generate high positive returns for the government B. Increase the financial risk faced by the private investors C. Attract private investors into the specific project D. Eliminate the moral hazard problem among investors
A bank has excess reserves of $5,000 and demand deposits of $50,000; the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, then this bank can lend a maximum of:
A. $1,000 B. $1,500 C. $2,000 D. $2,500