Which of the following is an example of the Fed making monetary policy?
A) Increasing government spending by $30 million
B) Decreasing the tax rate on interest rate earnings
C) Decreasing the discount rate to 2%
D) Increasing subsidies to solar energy producers
Ans: C) Decreasing the discount rate to 2%
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The income elasticity of demand is ________ if the good is ________ good
A) positive; a normal B) positive; an inferior C) negative; a normal D) less than one; an inferior E) positive; a substitute
Economies of scope has to do with lowering production costs by increasing the quantity of a product produced, whereas economies of scale has to do with lowering production costs by producing several products within the same firm
Indicate whether the statement is true or false
Which of the following observations is true of the federal budget between 1960 and 2010?
a. The federal budget was in deficit in the early 1960s. b. Between 1960 and 1970 the federal budget deficit reflected a sharp increase. c. The federal budget was in surplus between 1970 and 1980. d. The federal budget deficit was the highest in the late 1990s. e. The federal budget deficit was lower than 600 billion dollars in 2010.
Economists believe that free riders often can undermine the social commitment of many in the society, causing voluntary policies to fail.
Answer the following statement true (T) or false (F)