It has been noted that when the price of a good increases, people purchase less of the good. This is an example of

Property rights are well established for

a. private goods. b. public goods. c. common resources. d. both (b) and (c).

Which of the following examples would make banks most likely to give loans?

a. A bank receives $10 million from the Fed; interest rates are at 1 percent. b. A bank receives $5 million from the Fed; interest rates are at 7 percent. c. A bank receives $2 million from the Fed; interest rates are at 4 percent. d. A bank receives $1 million from the Fed; interest rates are at 5 percent.