When the Federal Reserve increases the money supply, it has the immediate effect of creating wealth
a. True
b. False
B
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What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks. B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stock-holder wealth than the well-being of farmers. C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community. D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is not maximizing profits.
B. is producing where marginal costs are less than marginal revenue.
C. is earning negative profits.
D. should increase production.
As the size of government increases as a share of the economy,
a. the burden of deadweight losses of taxation generally diminishes. b. the rate of return derived from projects undertaken by the government will tend to increase. c. the government generally becomes more heavily involved in unproductive and even counterproductive activities. d. the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.
People benefit by participating in the market because:
A.) Resources are no longer limited. B.) It facilitates specialization and increased consumption. C.) Buyers and sellers have the same goals. D.) Participants in the market do not have to make choices.