An example of a public good is
A. a concert by renowned country music star.
B. a good that can be used exclusively by one consumer only.
C. a local free fireworks display.
D. a café latte at Starbucks.
C. a local free fireworks display.
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What are reserves? Discuss the various types of reserves used in the U.S. banking system
What will be an ideal response?
In the above figure, at the point where AD equals SAS
A) real GDP exceeds potential GDP. B) potential GDP exceeds real GDP. C) the economy is in a recession. D) the unemployment rate is zero.
The Coase Theorem points out that for an efficient outcome to result, it is irrelevant which party receives the property rights
Indicate whether the statement is true or false
If policymakers use a pollution tax to control pollution, the tax per unit of pollution should be set
A) equal to the marginal private cost of production at the economically efficient level of pollution. B) equal to the amount of the deadweight loss created in the absence of a pollution tax. C) at a level low enough so that producers can pass along a portion of the additional cost onto consumers without significantly reducing demand for the product. D) equal to the marginal external cost at the economically efficient level of pollution.