In a situation in which internal costs differ from social costs, we say that there exists a(n)
A) welfare loss.
B) welfare benefit.
C) internality.
D) externality.
D
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Spot transactions
A) involve immediate settlement. B) may only take place in face-to-face trading. C) take place on-the-spot, rather than on an organized exchange. D) are relatively unimportant in financial markets.
Joseph Schumpeter's explanation of why economies experience business cycles focuses on
a. the climatic cycles caused by movements in the solar system b. the impact of war activity on the economy c. housing construction d. the clustering of innovations e. the interaction of the multiplier and the accelerator
Post 9/11, air travel industry in the U.S. economy saw an increase in demand, which led to a sharp rise in employment opportunities
Indicate whether the statement is true or false
Sarah has just deposited $1,000 in her checking account. She knows that the bank will keep part of these funds on hand and loan out the rest. This is an example of
A. fractional reserve banking. B. a sweep account. C. the Federal Reserve System. D. excess reserves.