Consider the following problems: overcrowded public highways, overfishing in the ocean, polluted air, and the near-extinction of the wild rhinoceros. What do these problems have in common?
a. Private markets could easily solve them if governments left the markets alone.
b. They would all go away if the government sponsored an intensive public-information campaign.
c. They are all the result of a failure to establish clear property rights over something of value.
d. They are all the result of a failure of corrective taxes.
c
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By announcing a higher inflation target, a central bank can
A) permanently increase real GDP and permanently decrease the unemployment rate. B) temporarily increase real GDP and permanently decrease the unemployment rate. C) permanently increase real GDP and temporarily decrease the unemployment rate. D) temporarily increase real GDP and temporarily decrease the unemployment rate.
As interest rates rise, more and more investments become profitable for a firm.
Answer the following statement true (T) or false (F)
What entices a second firm to enter a market that was previously a single price monopoly?
What will be an ideal response?
According to this Application, the bias in the CPI would be ________ if new goods are ________ incorporated in CPI calculations
A) smaller; slowly B) smaller; quickly C) negligible; slowly D) greater; immediately