To shift the RS curve rightward as illustrated, the Fed has ________ government securities in the open market. The Fed will undertake this type of policy if it is concerned about ________
A) sold; recession
B) sold; inflation
C) bought; recession
D) bought; inflation
E) None of the above answers is correct.
C
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Marginal cost is the
A) cost of an increase in an activity. B) total cost of an activity. C) cost of an activity minus the benefits of the activity. D) cost of all forgone alternatives.
The typical state spends the most on
a. education. b. Medicare and Social Security. c. highways. d. defense.
Answer the following statement(s) true (T) or false (F)
1. Economists have shown that economic growth results in political freedom. 2. On average, societies where saving some of one’s income is favored over spending it grow at a slower rate than other societies. 3. Investments by foreigners tend to reduce a country’s growth over the long run. 4. While some economists believe that improvements in infrastructure can increase productivity, other economists believe that increased productivity leads to better infrastructure. 5. A government can improve productivity by investing in research and development.
Professional gamblers know that the odds are always in favor of the house (casinos). The fact that they gamble says they are:
A. risk-neutral. B. risk-averse. C. risk seekers. D. irrational.