Traffic congestion represents
a. A positive network externality
b. A negative network externality
c. A Bandwagon effect
d. Neither a positive nor a negative externality snob effect; congestion
b
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The most important advantage of discount policy is that the Fed can use it to
A) precisely control the monetary base. B) perform its role as lender of last resort. C) control the money supply. D) punish banks that have deficient reserves.
In-kind transfers can be justified over cash transfers on the grounds that _____
a. they give the recipients higher utility b. they have lower administrative costs c. they are more equitable than in-kind transfers d. taxpayers prefer them
Which phase of the business cycle would be most closely associated with an economic contraction?
A. recession B. peak C. trough D. recovery
A move from K to L represents a
A. change in quantity supplied.
B. change in supply.
C. increase in supply.
D. decrease in supply.