When city beautification programs are funded privately:
a. only contributing citizens are likely to benefit from a more beautiful city
b. only free riders are likely to benefit from a more beautiful city.
c. an underallocation of resources toward the beautification project is likely to occur relative to what is socially efficient.
d. none of the above
c
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Explain how a price floor set above the equilibrium market price for a good can cause a surplus of that good
What will be an ideal response?
When expansionary monetary policy pushes interest rates downward to a low level,
a. the velocity of money will decline, which will weaken the expansionary impact on demand and nominal GDP. b. the velocity of money will increase, which will strengthen the expansionary impact on demand and nominal GDP. c. the prices of stocks and other real assets can be expected to fall, which will weaken the impact of the expansionary policy on demand and nominal GDP. d. the earnings derived from savings accounts will increase, which will stimulate demand and nominal GDP.
David's firm experiences diminishing marginal product for all ranges of inputs. The total cost curve associated with David's firm
a. gets flatter as output increases. b. gets steeper as output increases. c. is constant for all ranges of output. d. is unrelated to the production function.
A deductible is the
A. amount of covered expense that an individual will have to pay before the insurance company pays anything. B. percentage of a covered expense that an individual will have to pay. C. amount of covered expense that an insurance company will have to pay before the individual pays anything. D. percentage of a covered expense that an insurance company will have to pay.