If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,
a. the price of steel should fall.
b. society should produce less steel.
c. the price of goods made with steel should fall.
d. society should direct resources toward steel production and away from the production of other goods.
b
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A distinction between stocks and bonds is that
A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange. B) stocks represent ownership claims to the company and bonds do not. C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time. D) bonds can be traded many times in the bond market, while stocks are non-transferable. E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
Development plans have often failed because
(a) they have been insufficiently specific about projects. (b) they have overlooked noneconomic considerations. (c) they have been overambitious. (d) all of the above. (e) none of the above.
The appropriate discount rate should not be adjusted for _____
a. inflation b. risk of default c. taxes on interest d. a and c
Which of the following is an example of the Fed's use of unconventional monetary policy?
a. buying assets other than Treasury bills b. participating in rescue operations for troubled financial institutions c. lending massive amounts to banks and other financial institutions d. all of the above