When economists hold factors other than the one they are analyzing constant, they are demonstrating the principle of
a. circular flow analysis
b. consumer sovereignty
c. ceteris paribus
d. normative economics
e. scarcity modification
C
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When the Fed lowers the federal funds rate, it can lead to
A) the Fed selling government securities. B) an increase in lending by banks. C) a decrease in demand deposits. D) a decrease in the quantity of money.
The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that
A) information about the Fed's plans will inevitably be leaked to the public. B) the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place. C) the public would eventually figure out what the Fed's policies were, negating the Fed's surprise. D) competition in the money markets would neutralize the Fed's intervention.
The fact that price and quantity demanded are related negatively illustrates the:
a. law of supply. b. law of quantity supply. c. law of demand. d. law of quantity demanded. e. point that some facts are unobservable.
The value of life is calculated by comparing
A. average wages to the average retirement age. B. wages to the number of children in a worker's household. C. risk levels to the number of children in a worker's household. D. wages to risk levels. E. average life expectancy by occupation to average risk levels by industry.