Which of the following would be classified as a public good?
A. Internet service subscription
B. police protection
C. telephone service
D. state lotteries
Answer: B
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At the national level, higher saving rates lead to ________ and higher standards of living.
A. crowding out B. greater investment C. greater current consumption D. slower growth
Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality), how many plums (high quality) will be supplied by sellers?
A. 8 B. 12 C. 16 D. 22
Public companies are companies that
A. have sold shares of stock to the general public. B. act as financial intermediaries. C. have not yet had an initial public offering. D. are owned or managed by the federal government.
The Federal Reserve will engage in open market operations when
A. it wants to change the money supply. B. it wants to change the reserve ratio. C. it wants to punish private banks because they are not keeping the required level of reserves. D. it wants to increase the total amount of reserves since government securities are considered a reserve.