Which one of the following statements about public goods is true?
a. Problems with public goods can always be solved by charging a fee to use the good
b. Public goods may provide psychic benefits
c. Public goods will tend to be oversupplied
d. Money to provide public goods is commonly collected from free riders
e. Public goods are any goods owned or provided by governments
Ans: b. Public goods may provide psychic benefits
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Refer to Figure 23-2. If the U.S. economy is currently at point N, which of the following could cause it to move to point K?
A) Government expenditures increase. B) Firm's cash flows rise as profits rise. C) Households expect future income to rise. D) Household wealth falls.
Refer to Figure 12.3. Suppose that after a negative supply shock, the economy is at point X in the IS-MP model and at point B on the Phillips curve. If the Fed has a goal of price stability, the economy would ________ in the IS-MP model and ________ on the Phillips curve.
A) move to point Y; move to point C B) remain at X; move to point A C) move to point Y; remain at point B D) move to point Z; move to point A