When market trades in water occur, we can assume that
a. the party releasing water is the loser.
b. the party buying water is paying too much.
c. the trade in something as important as water is immoral.
d. the signals and incentives flowing from the trades help many in that water market, not just the buyer and seller directly.
D
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A $1 increase in high-powered money raises the quantity of deposits until
A) all of that increase in high-powered money is held as required reserves. B) required reserves fall back down to zero. C) required reserves rise back up to zero. D) deposits rise by $1. E) GDP rises by $1 times the income-determination multiplier.
The circular flow model is all of the following except
a. an abstraction from reality b. a model of two markets c. a model of two agents d. a simple economic model e. designed to aid policy makers
Answer the following statement(s) true (T) or false (F)
1. Microeconomics is the study of the whole economy, including topics of inflation and economic growth. 2. Causation occurs when two events occur together. 3. The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals combined in a group. 4. In the role of scientist, the economist is concerned about the ethics of human behavior.
Deadweight Loss is defined as
A. the loss to society that results from incomes being too high or too low. B. the loss to society that results from items costing more than some can afford. C. the loss to society that results from production being too high or too low. D. none of these