Which of the following statements is FALSE?
A) Economic goods are available in desired quantities at a zero price.
B) A good is anything that gives satisfaction or happiness to individuals.
C) Services are intangible goods such as dry cleaning, hospital care, and restaurant meal preparation.
D) Wants are unlimited and include all material and nonmaterial desires.
A
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The level of reserves in the banking system is determined by
A) the Federal Open Market Committee. B) the Treasury Department. C) bond dealers. D) the American Banking Association.
In explaining the downward-sloping aggregate demand curve, the net export effect is:
a. When a nation's price index falls, international capital flows are attracted to it, which causes the net exports to rise. b. When the price index falls, net exports fall because a nation's exports become relatively cheaper and its imports become relatively more expensive. c. When the price index falls, the real money supply rises, causing the real risk-free interest rate to fall, and consumption and real investment to rise. d. When the price index falls, net exports rise because a nation's exports become relatively cheaper and its imports become relatively more expensive. e. When the price index falls, central banks intervene to bring prices back to where they were, causing net exports to rise.
The concept of limited and bundled choice, as used in public choice theory, refers to the fact that:
A. Politicians may not be objective in evaluating economic policy programs B. Because of the importance of television and other modern communication techniques, the best and brightest candidates may not be selected by voters C. In an election, voters must select a candidate who has various preferences in a wide array of issues D. The most economically efficient public policy programs may not be selected because political leaders do not know enough about economics
A country enjoys an absolute advantage in the production of a good if that good can be produced at a lower cost in terms of other goods.
Answer the following statement true (T) or false (F)