Why does the government place price ceilings, such as rent control, on some "essential" goods?
A. to lower demand for there goods
B. to keep people from starting new buisness
C. to keep the goods from becoming too expensive
D. to encourage businesses to produce more
Ans: C. to keep the goods from becoming too expensive
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List the three possible ways the government can make adjustments, and the three possible ways the private sector can make adjustments, to an increase in the government's budget deficit
What will be an ideal response?
Why might the Fed decide to monetize the deficit?
a. to keep inflation low b. to reduce the structural deficit c. to reduce the budget deficit d. to keep interest rates low
Economic systems differ according to what two main characteristics?
A. Ownership of resources and methods of coordinating economic activity. B. The system of government and the quantity of natural resources available. C. Quantity of output produced and who receives the output. D. Who produces the output and what technology is used to produce it.
Which of the following statements is false?
A) Regardless of the commodity, the farmer always receives 20 cents of the dollar spent in food. B) The Latin phrase ceteris paribus means everything else the same or holding all other factors constant. C) The rational consumer maximizes satisfaction subject to a budget constraint. D) Agricultural economics is an applied social science.