Public goods arise because of externalities.
Answer the following statement true (T) or false (F)
True
Rationale: Non-rivalry means that one person's consumption can be another person's consumption too -- i.e. one person's consumption gives rise to a positive externality for another.
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Since all assets typically do not move together, how can investors typically reduce risk?
A) Purchase only the best performing assets. B) Diversify one's portfolio across different asset classes. C) Avoid poor performing assets. D) Actively manage one's portfolio.
An HVAC company is selling heating and cooling equipment. It has separate sales and marketing units. The marketing unit would want to
a. Price aggressively to ensure sales are made b. Price less aggressively to ensure that profitable sales are made c. Price at cost to maximize sales d. None of the above
A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment
a. True b. False Indicate whether the statement is true or false
Assuming that households do not change their cash holdings and banks loan out all of their excess reserves, if the required reserve ratio (RRR) is 20 percent and the Fed purchases $2,000 worth of bonds from banks, how much money will be eventually created?
a. $1,800 b. $2,000 c. $10,000 d. $18,000 e. $20,000