Assignment
Part A: Answer each of the following questions in one to three paragraphs.
1. Why is the right of private property an essential characteristic of a market system?
2. Rivalry and excludability are the two characteristics 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?
Part B: Answer each of the following questions in one to four sentences. Each answer is worth seven points.
1. State at least one economic benefit to increased international trade.
2. Why might a corporation prefer to obtain financing through bonds instead of stocks?
In contrast, why might a corporation prefer to obtain financing through stocks instead of bonds?
2. Is a credit card considered to be money? Explain.
3. Explain what is meant by a command economy.
4. What are the two maininvestorpreferences, and how do they conflict?
5. Why does competition force firms to use the least- cost, most- efficient productive techniques?
6. Explain the aspects of expansionary and contractionary fiscal policy. During which phases of thebusinesscyclewould 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 ofstocksandbondssold?
9. What is meant when economists say that theFederalReserveBanks are bankers banks?
10. What is the effect on the money supply when a commercial bank buys government securities from the public?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.