Air pollution best illustrates
A. Market power.
B. An inequity.
C. Government failure.
D. An external cost.
Answer: D
Economics
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What interest rate does a bank pay when it borrows reserves from the Fed?
a. The discount rate. b. The prime rate. c. The federal funds rate. d. The required reserve rate.
Economics
Graphically, producer surplus is measured as the area:
A. under the demand curve and below the actual price. B. under the demand curve and above the actual price. C. above the supply curve and above the actual price. D. above the supply curve and below the actual price.
Economics