If a Central Bank wished to reduce the supply of money it should:
(a) Sell government bonds and securities in the money market.
(b) Raise the rate of discount (Bank rate).
(c) Raise the reserve requirement ratio.
(d) Do any or all of the above.
Answer: (c) Raise the reserve requirement ratio.
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When a forest is logged, it is possible for the logging to create "soil runoff," a situation in which the soil, no longer protected by trees, erodes and silts a river miles downstream from the logging area
Is soil runoff created by logging in Montana that ruins a river an example of a private cost to the lumbering company or an external cost?
Observe the difference in vending machines between canned soda and newspapers. Typically, if you insert coins into a newspaper vending machine and open it you will see available all of the copies of the newspaper within one's reach
However, soda machines are very different. They work such that only one can is dispensed at a time. The rest of the canned soda is well out of reach. Explain in terms of marginal utility why the newspaper distributor is relatively unconcerned about the rest of the newspapers being taken without payment while the soda distributor uses a machine that goes to great lengths to insure that only one can of soda is dispensed at a time.
The position of a demand curve is unaffected by changes in the price of the good
a. True b. False Indicate whether the statement is true or false
An activity is productive if it
What will be an ideal response?