When banks offer checking accounts, they are issuing a(n):
A. financial asset that cannot function as money.
B. financial liability.
C. financial asset that functions as money.
D. IOU.
Answer: C
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Economists call the influences of the decisions of others on our decisions ________
A) peer effects B) moral hazard C) externalities D) cluster effects
The first unit of an information product is produced at a high fixed cost. Producing additional units entails relatively low
A) total costs. B) marginal and average variable cost. C) external cost. D) social cost.
A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups
a. True b. False Indicate whether the statement is true or false
Marginal damages
A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.