6. Street lights are a public good.If street lights were provided by the private market, at the equilibrium quantity, it would be the case that
(A)MSB = MSC
(B)MSC ＞ MC
(C)MSB ＞ MSC
(D)MSB ＞ MB

7. In the foreign exchange market, if the supply of dollars ___________ and simultaneously the demand for dollars ___________, then the exchange rate definitely ___________. (A)increases； increases； depreciates (B)decreases； increases； depreciates (C)increases； decreases； depreciates (D)decreases； decreases； appreciates

8. In 2013, the U.S. credit card balance was $866 billion. Which of the following is true? (A)The $866 billion balance is part of M2 but not part of M1. (B)The $866 billion balance is part of both M1 and M2. (C)Only that portion of the $866 billion actually charged in 2009 is counted in M1 and M2. (D)No part of the $866 billion balance is counted in M1 and M2.

9. The order for the chain of events for the Keynesian model is for a change in ___________ to lead to a change in ___________, which is then multiplied resulting in a change in ___________. (A)investment； animal spirits； the price level (B)business confidence； investment； real GDP (C)the Fed's intermediate targets； the Fed's goals； real GDP (D)real GDP； income； consumption

10. If the economy is at potential GDP and the central makes an open market sale of government securities, in the long run the aggregate ___________ curve shifts ___________ and the price level ___________. (A)demand； rightward； rises (B)supply； leftward； rises (C)demand； leftward； falls (D)supply； leftward； falls

1. "The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." Why do buyers care so much about a tax on insulin, a vital daily medicine for those with diabetes? (A) Because buyers pay virtually the entire tax on insulin because the demand is almost perfectly inelastic (B) Because sellers increase their profit when there is a tax (C) Because more insulin can be provided to those in need (D) Because the tax incidence is equal between the buyers and sellers

2. The federal government pays airlines to service small cities in the United States through a subsidy program called Essential Air Service which was established in 1978 when the airline industry was deregulated. Most subsidies can't exceed $200 per passenger. What is NOT an effect of this subsidy? (A) an increase in price and an increase in quantity produced (B) an increase in supply (C) an increase in variable cost (D) inefficient overproduction

3. Suppose that Richard has just told you that he would not pay more than $100 dollars for one of his favorite baseball cards. You offer to give him $110 dollars for his card and he refuses. What consumer choice theory or effect explains this result? (A) the endowment effect (B) bounded rationality (C) bounded self-interest (D) the endorsement effect

4. Since natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would (A) cause the monopolist to operate at a loss. (B) result in a less than optimal total surplus. (C) maximize producer surplus. (D) result in higher profits for the monopoly.

5. Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If the price is equal to $9 per unit then the quantity demanded in the market will be ______ and the consumer surplus for this unit will be ______. (A) 3； $10 (B) 3； $37 (C) 3； $36 (D) 4； $8

6. In mid-2008 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ______ shift in the demand curve for a ticket on Continental because the price of a ______ had risen. (A) rightward； complement (B) leftward； substitute (C) leftward； complement (D) rightward； substitute

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