Category: Uncategorized

True or False.  The financial crisis of 2007 and 2008 occurred because bank were willing to give out more sub prime loans knowing the risk was less due to the secularization of loans occurring at this time.

There are two policy tools that can be used to fine tune the economy and achieve macro economics goals of low inflation, low unemployment and economic growth.  These tools are entitled fiscal policy and monetary policy.  Mark all items that apply to fiscal policy.

By raising or lowering the ______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves.

The supply and demand conditions for a firm are given in table below.  Identify the equilibrium price after the social cost of production is included.  Enter your answer as a numeric value no dollar sign e.g. 600. Price Quantity Demanded Quantity Supplied before Considering Pollution Cost Quantity Supplied after Considering Pollution Cost $100 500 275 200 $200 475 300 225 $300 425 325 250 $400 400 350 275 $500 375 375 300 $600 325 400 325 $700 300 425 350  

Increase in the price of crude oil, increases or decreases the supply of gasoline?

What type of laws or tools lead to an point inside the production possibilities frontier?

Match the words to the correct definitions:

The current population survey reports on:

Suppose the following data represent the market demand for college education: Tuition (per Year) 1000  2,000  3,000  4,000 5,000   6,000   7,000   8,000 Enrollment demanded (in millions) 16 15 14 13 12 11 10 9 If tuition is set at $3,000 and society gets an external benefit of $1,000 for every every enrolled student (for lets say, more informed voting). What is the socially optimal level of enrollments at the tuition price of $3,000? Enter your answer as a numeric value e.g. 15 no need to include any zeros

This table contains data on the social costs and benefits incurred in improving water quality in a lake. Complete the table below, what is the optimal water pollution amount of improving the water quality in a lake.  Enter you answer as a numeric value e.g. 12. Water Pollution (PPM) Total Costs Marginal Cost Total Benefits  Marginal Benefit 45 20 – 120 – 35 25 190 25 35 240 10 65 270 0 100 280