In principle, prorationing could lead to more efficient extraction of oil from the ground
Indicate whether the statement is true or false
T By restricting the rate at which oil was taken from the ground, prorationing could support more efficient exploitation of an oil reservoir.
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An international lender of last resort creates a serious ________ problem because depositors and other creditors of banking institutions expect that they will be protected if a crisis occurs
A) moral hazard B) adverse selection C) public choice D) strategic choice
Refer to the above figure. Suppose the economy is at E and the government uses an expansionary fiscal policy to move the aggregate demand curve to AD2. In the end, the aggregate demand curve is still AD1. A possible reason for this is that
A. some of the increased government spending is not counted in GDP. B. the increased borrowing causes higher interest rates, which encourage people to save more and increase investment spending due to the extra saving. C. people increase saving because they anticipate higher future taxes, resulting in a reduction in current consumption spending that offsets the increased government spending. D. the economy is already at full employment.
You will still be able to listen to NPR (National Public Radio) whether or not you contribute to their fund-raising campaign, so you decide not to contribute. This is an example of the
A. drop-in-the-bucket problem. B. private good problem. C. free-rider problem. D. rival in consumption problem.
A technological improvement lowers the cost of producing corn. As a result, the price of a pound of corn ____ and the quantity of corn ____. Question 4 options:
A. falls; increases B. falls; does not change C. falls; decreases D. rises; decreases E. rises; increases