Governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them. What type of market failure is involved?
A. Market power.
B. Public goods.
C. Externalities.
D. Inequity.
Answer: B
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Which of the following is false?
A. For bond buyers, the higher the yield the better it is for them. B. For bond buyers, the higher the price of the bond the better it is for them. C. For bond buyers, the lower the yield the worse it is for them. D. The term yield on a bond is the same as the term interest rate on a bond.
When the U.S. Treasury purchases gold and then replenishes its deposit in the Fed the effect is that __________ and __________
A) reserves increase; gold certificates increase B) reserves decrease; gold certificates increase C) gold certificates increase; Treasury deposits increase D) gold owned by the Fed increases; Treasury deposits increase
Which of the following are reasons for the increased centralization in school financing?
a. The existence of diseconomies of scale in education. b. A desire by state education agencies to decentralize control. c. A desire to equalize funding across school districts. d. Increasing positive externalities from education as globalization increases.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this were depicting an autarky economy, the amount being bought domestically is:
A. 45 at $23 each. B. 45 at $11 each. C. 120 at $23 each. D. 85 at $16 each.