If children go to school and become productive members of society

A) a negative externality is created by the schools.
B) a positive externality is created by the schools.
C) no externality is created by the schools.
D) an externality is created that may be positive or negative.

B

Economics

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In the short run, a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss

A) might; will never B) will never; might C) might; might D) will never; will never E) will definitely; will never

Economics

The stock of high-powered money in the economy is $80 billion. The bank reserve-holding ratio is 0.12 and the public wishes to hold 10% of its deposits as cash. The level of bank deposits will be

A) $333 billion. B) $100 billion. C) $250 billion. D) $200 billion.

Economics