The free rider problem _____
a. leads to an understatement of demand for the good in question
b. is beneficial because it leads to lower public spending
c. is functionally equivalent to the transitional gains trap
d. is more prevalent in small groups
a
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A government budget deficit is
A) an excess of government spending over government revenues during a given time period. B) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. C) the total value of all outstanding federal government securities. D) all federal government debt irrespective of who owns it.
A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is: a. zero
b. the prime rate. c. the discount rate. d. the federal funds rate. e. the required reserve ratio.
The interest rate which the Fed charges banks that borrow reserves from it is the:
a. federal funds rate. b. discount rate. c. reserved rate. d. investment rate. e. check rate
The existence and use of the Internet has lowered the transaction costs of making some exchanges
Indicate whether the statement is true or false