A charity that used to arrange matching charitable contributions, but no longer does, is likely to ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller
B. reduce; larger
C. increase; smaller
D. increase; larger
Answer: C
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A commercial bank creates money when it does all the following except ______
A. decreases its excess reserves B. makes loans C. creates deposits D. puts cash in its ATMs
Nonparticipants in the labor force include those who are classified as unemployed
Indicate whether the statement is true or false
Gerald spends his weekly income on gin and cocktail olives. The price of gin has risen from $7 to $9 per bottle, the price of cocktail olives has fallen from $6 to $5 per jar, and Gerald's income has stayed fixed at $46 per week. Since the price changes, Gerald has been buying 4 bottles of gin and 2 jars of cocktail olives per week. At the original prices, 4 bottles of gin and 2 jars of cocktail
olives would have a. exactly exhausted his income. b. cost more than his income. c. cost less than his income. d. could have maximized his satisfaction given his budget constraint.
Which would most likely increase aggregate supply?
A. A decrease in the prices of resources. B. A decrease in net exports. C. An increase in the degree of excess capacity. D. A decrease in subsidies for businesses.