Figure 16-1
In Figure 16-1, there are four levels of income. G is government expenditures and TT is taxes less transfers. At which level of income does the official budget produce a surplus?
a.
Y4
b.
Y3
c.
Y2
d.
Y1
a
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The Fed can attempt to decrease the federal funds rate by
A) lowering the reserve requirement, which increases the money supply. B) lowering the reserve requirement, which decreases the money supply. C) raising the reserve requirement, which increases the money supply. D) raising the reserve requirement, which decreases the money supply.
Refer to Figure 10.3. Inflation increases most rapidly as the economy moves from
A. AD2 to AD3. B. AD3 to AD2. C. AD2 to AD1. D. AD1 to AD0.
What is the basic difference between a public good and a private good?
Please provide the best answer for the statement.
If the marginal benefit of one more unit of a public good is $500 for Sam and $800 for Alex, the social benefit of one more unit of a public good is:
A. more than $1,300 since the benefits to society exceed the sum of individual benefits. B. $500 since the benefit will go to the person who values it least. C. $800 since the benefit will go to the person who values it most. D. $1,300 since the benefit of one more unit goes to both individuals.