The two main characteristics of a public good are:
A. production at constant marginal cost and rising demand.
B. nonexcludability and production at rising marginal cost.
C. nonrivalry and nonexcludability.
D. nonrivalry and large negative externalities.
Answer: C
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The process of bundling loans together and buying and selling these bundles in a secondary financial market is called
A) seigniorage. B) securitization. C) open market operations. D) fractional reserve lending.
In the new classical model, a $100 billion increase in government purchases financed by borrowing will
a. increase the real interest rate, which will crowd out private spending. b. lead to a $100 billion increase in real GDP. c. lead to a $400 billion increase in real GDP if the marginal propensity to consume is three-fourths. d. leave the interest rate, aggregate demand, and real output unchanged.
Discretionary expenditures
What will be an ideal response?
If close substitutes are available that have only slight product differentiation, a firm can still be a monopoly.
Answer the following statement true (T) or false (F)