The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is
A) A.
B) B.
C) C.
D) zero units supplied.
B
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Suppose that the Fed makes a $100 billion open-market sale of Treasury bonds, and the money multiplier is 6 . Which of the following impacts aremostlikely to result?
a. The money supply shifts inward, and the equilibrium interest rate rises in the money market. b. The money supply shifts outward, and the equilibrium interest rate falls in the money market. c. Investment declines, causing the aggregate demand curve to shift leftward, reducing equilibrium real GDP and thus slowing the economy. d. Both a. and c. are correct. e. Both b. and c. above are correct.
From 2004 to 2006, the U.S. budget was ________, private saving was ________ domestic investment, and foreign borrowing was ________
A) in deficit, less than, needed to finance deficit B) balanced, roughly equal to, not needed to finance deficit C) balanced, less than, substantial. D) surplus, greater than, negligible
Private capital flows in the form of both direct and portfolio investment began to return to Latin America after 1989, effectively marking the end of the Lost Decade
Indicate whether the statement is true or false
According to the theory of comparative advantage, ________ raise(s) productivity by lowering opportunity costs.
A. trade and specialization B. exchange and consumption C. economic growth D. investment in capital goods