What do a rubbernecking traffic jam and the paradox of thrift have in common?
A. In both cases, individual behavior has large negative consequences for the whole of society.
B. In both cases, seemingly bad behavior ends up harming everyone.
C. In both cases, seemingly careless behavior leads to good times for all.
D. In both cases, government intervention can only make matters worse
Ans: A. In both cases, individual behavior has large negative consequences for the whole of society.
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A commercial bank's main goal is to
A) provide loans to its customers. B) maximize the wealth of its stockholders. C) lend money to the Federal Reserve Banks. D) open checking accounts. E) help the government when it needs money.
The demand for luxury suites at basketball games is more elastic if
A) these suites are a necessity. B) these suites are a luxury item. C) few close substitutes exist for these suites. D) basketball fans have little time to look for alternative suites. E) poorer fans cannot afford luxury suites.