If the firm represented in the diagram is currently producing and selling Q a units, what is the price charged?
A. P0
B. P1
C. P2
D. P3
Ans: C. P2
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Personal consumption expenditures include all of the following EXCEPT spending on
A) consumer durable goods. B) consumer nondurable goods. C) consumer services. D) new housing.
Why might Congress benefit from the Fed being self-financed?
A) Self-financing increases Congressional control over the Fed. B) Self-financing reduces the Fed's exposure to external pressures. C) Self-financing gives the Fed an incentive to expand the money supply, which ultimately results in Congress having additional funds to spend. D) Congress does not benefit from the Fed being self-financed; Congress is obliged by the Constitution to allow the Fed to be self-financed.
Free ridership is associated with what kind of externality, and why?
a. positive, because costs are identified but not internalized b. negative, because costs are identified but not internalized c. positive, because many who benefit are not always identified or accounted for d. negative, because many who benefit are not always identified or accounted for e. positive, because social value equals private value
Stock prices tend to ________ when the Federal Reserve raises interest rates because higher interest rates ________ dividends.
A. fall; reduce B. rise; reduce C. fall; increase D. rise; increase