If the price of an item can freely adjust, a market will
A) always move towards equilibrium.
B) always have an excess quantity demanded.
C) always have an excess quantity supplied.
D) never move towards equilibrium because prices are always increasing.
Answer: A
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The federal budget is decided upon by the
A) President of the United States and the United States Treasury. B) the United States Treasury alone. C) President of the United States and the United States Congress. D) President of the United States and the Federal Reserve system. E) United States Congress and the Federal Reserve System.
Government outlays and government expenditures mean the same thing
a. True b. False
Explain the real-nominal principle.
What will be an ideal response?
Self-interest relates to
A) only monetary objectives. B) both monetary and nonmonetary objectives. C) the ceteris paribus assumption. D) normative economic analysis and not positive economic analysis.