U.S. corporate stock is distributed fairly equally among U.S. stockholders
Indicate whether the statement is true or false
F
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Value is
A) the price we pay for a good. B) the cost of resources used to produce a good. C) objective so that it is determined by market forces, not preferences. D) the marginal benefit we get from consuming another unit of a good or service. E) the difference between the price paid for a good and the marginal cost of producing that unit of the good.
People will tend to "internalize externalities" when
A) responsibility for the consequences of actions is more clearly assigned to the actors. B) spillover costs and benefits become more common and widespread. C) they calculate more carefully the marginal costs and marginal benefits of their decisions. D) they feel less empathy for others.
The problem caused when people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone, even for those who don't pay is called the:
A. free-rider problem. B. moral hazard problem. C. drop in the bucket hypothesis. D. rational ignorance problem.
The consumption function will shift upward if real asset and money holdings:
A. increase, if people expect prices to increase, if interest rates decrease, and if taxes decrease. B. increase, if people expect prices to increase, if interest rates increase, and if taxes increase. C. increase, if people expect prices to increase, if interest rates increase, and if taxes decrease. D. decrease, if people expect prices to decrease, if interest rates decrease, and if taxes decrease.