Which of the following is an open market purchase?
a. When private individuals sell government bonds
b. When the Fed sells government bonds
c. When private individuals purchase government bonds
d. When bond dealers buy government bonds from the fed
e. When the Fed buys government bonds
E
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The additional benefit to a consumer from consuming one more unit of a good or service
A) is equal to economic surplus. B) is equal to marginal benefit. C) is equal to the opportunity cost of consuming the good or service. D) is equal to consumer surplus.
If the United States and other developed nations pay the cost of reducing public emissions, developing nations such as China could benefit from the reduction while not contributing to it In this sense, one can think of reducing carbon emissions as being like a
A) quasi-private good. B) private good. C) quasi-public good. D) public good.
If the government wishes to raise revenue by taxing cigarettes, it
A. is best to tax the producer since they will not cut production just because of the tax. B. makes no difference whether the consumer or the producer actually transfers the money to the government since the market effects are the same. C. is best to have the consumers pay the tax since they view cigarettes as necessities. D. is foolish since a sales tax increase leads to less tax revenue in an industry like tobacco.
The nation of Cropitia has a comparative advantage over Bonovia in producing ham if
A. Cropitia can produce more than 320 pounds of cheese per month. B. Cropitia's opportunity cost of producing a pound of ham is less than 0.8 pounds of cheese. C. Cropitia's opportunity cost of producing a pound of ham is greater than 0.8 pounds of cheese. D. Cropitia can produce more than 400 pounds of ham per month