13 Jan Economics-1 Part A and B
1. Why is the right of private property an essential characteristic of a market system?
2. Rivarlry and excludability are the two characteristic of goods that are produced through the competitive market system. Compare and contrast the difference in private and public goods based on these two characteristics. Then, explain the concept of the free-rider problem with public goods.
3. How do economists distinguish between the absolute and relative sizes of the United States public debt? Why is the distinction important?
3. How do economists distinguish between the absolute and relative sizes of the United States public debt? Why is the distinction important?
3. Is a credit card considered to be money? Explain
4. Explain what is meant by a command economy.
5. What are the two main investor preferences, and how do they conflict?
6. Why does competition force firms to use the least-cost, most-efficient productive techniques?
7. Explain the aspect of expansionary and contractionary fiscal policy. During which phases of the business cycle would each be appropriate?
8. When measuring the GDP for a particular year, why do economists include only final goods? Why don’t they include the value of stocks and bonds sold?
9. What is meant when economists say that the Federal Reserve Banks are bankers banks?
10. What is the effect on the money supply when a commercial bank buys government securities from the public?
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