Banks create money by
A) printing currency.
B) asking the Fed to print more currency.
C) lending to the Fed.
D) making loans.
E) buying government securities.
D
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Answer the following statement(s) true (T) or false (F)
1. The underlying assumptions of the Coase Theorem are that transactions are costless and that damages are accessible and can be measured. 2. The study conducted by Greenpeace China of the Pearl River Delta (PRD) region indicates that progress is being made to improve water quality. 3. If property rights are held by the producer of an externality-generating good, then bargaining will continue as long as MEC>?>M?, where ? represents the payment offered to the producer not to pollute. 4. If recreational users of a natural resource hold the property rights to that resource, their bargaining stance with the producer of an externality-generating good who wants to use that resource is that they will accept a payment ? as long as ?< (MSC – MSB). 5. If property rights for resources are shared, those resources are called common property resources.
The price of coal fell and the quantity sold also fell. Everything else being equal, it is consistent that
A. the price of oil fell. B. coal miners received large wage increases. C. more efficient mining equipment was installed. D. consumer incomes rose. E. the supply of coal fell.
Even when the demand for one good is high, the price of the good is also affected by supply. The textbook illustrates this by comparing the price of two items that were auctioned on the same day
Which of the following describes the results of the auction? A) A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth. B) A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln. C) A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith. D) A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald.
A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . Using the method of average values, the price elasticity of demand for memberships at this health club is
a. 6.00 b. 0.10 c. 1.00 d. 0.25 e. 0.83