Externalities are a type of market failure because:
A.) Buyers do not have complete information about the product.
B.) Producers have too much power.
C.) Third parties bears the costs or benefits of a market activity.
D.) Goods and services are not distributed fairly.
C.) Third parties bears the costs or benefits of a market activity.
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A bank's excess reserves can be calculated as
A) total reserves times the reserve ratio. B) demand deposits times the reserve ratio. C) total reserves minus required reserves. D) demand deposits minus total reserves.
Because of the accounting techniques used, the balance of payments shows that debits equal credits only if exports equal imports
a. True b. False
The relationship between the wage rate and the quantity of labor that workers wish to supply in total is called: a. the market supply curve for labor
b. the market demand curve for labor. c. an individual demand curve for labor. d. an individual supply curve for labor.
High marginal tax rates, such as those instituted during the Great Depression, will
a. increase the incentive of people to earn. b. lead to a proportional increase in tax revenue and a reduction in the size of the budget deficit. c. cause people to work, earn, and invest less than would be the case if marginal tax rates were lower. d. attract workers from other countries where tax rates are lower.