The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of
a. the quantity supplied minus the quantity demanded.
b. surpluses, shortages, and quantity.
c. goods, services, labor, and financial capital.
d. price controls and equilibrium prices.
c. goods, services, labor, and financial capital.
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Immigrant entrepreneurs have founded what portion of semiconductor, computer/communication, and software companies in the U.S.?
A. 5% - 10% B. 10% - 20% C. 20% - 25% D. 25% - 35%
The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by
A) a change in interest rates, which changes investment. B) a change in interest rates, which changes the money supply. C) leading to shifts of the short-run aggregate supply curve. D) changing consumer consumption behavior as they adjust to a change in the number of dollars available.
Which of the following statements is true?
A) Firms normally prefer wage cuts over lay-offs. B) Cuts in wages boost worker morale. C) Workers normally resist increases in wages. D) Wage rigidity can cause unemployment.
If the Fed _____________________, the money supply will ultimately __________
A) raises the discount rate relative to the federal funds rate; decrease B) lowers the discount rate relative to the federal funds rate; increase C) lowers the discount rate relative to the federal funds rate; decrease D) raises the discount rate relative to the federal funds rate; increase E) a and b