Which of the following is a property of a public good?

A. It is established by legislation.
B. Free riders are excluded.
C. Users collectively consume benefits.
D. It is determined by positive economics.


Answer: C

Economics

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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.

Economics

In monopolistic competition, in the short run a firm maximizes its profit by selecting an output at which marginal cost equals

A) average total cost. B) marginal revenue. C) price. D) zero.

Economics

The economic system of which of the following countries can be treated as an example of a command economy?

a. United States b. Canada c. United Kingdom d. Cuba

Economics

The Fed established stock market margin requirements to reduce the possibility of a stock market panic

Indicate whether the statement is true or false

Economics