When a Customer Deposits $100 into a Checking Account,it

question 52

Multiple Choice

When a customer deposits $100 into a checking account,it:

• A)increases the bank's liabilities only.
• B)decreases the bank's liabilities only.
• C)increases the bank's assets only.
• D)decreases both the bank's liabilities and its assets.
• E)increases both the bank's liabilities and its assets.

Identify and explain the free-rider problem associated with public goods.

Explain the concept of the optimal level of provision for public goods.

Understand the principles behind the Tiebout hypothesis and Samuelson's theory of public expenditure.

Recognize and explain the drop-in-the-bucket problem.

---

Definitions:

Chorionic Villus Sampling

A prenatal test where samples of the chorionic villi are taken to test for genetic disorders in the fetus.

Amniocentesis

Sampling of the amniotic fluid surrounding a fetus to obtain information about its development and genetic makeup. Compare with chorionic villus sampling.

Pedigrees

A diagram that shows the occurrence and appearance of phenotypes of a particular gene or organism and its ancestors from one generation to the next, used in genetics.

Phenotype

A group of visible traits in a person that arise from the interplay between their genetic code and environmental factors.