The major incentive for cost minimization is the
A. power of shareholders in the company.
B. fear of top management by workers.
C. discipline imposed by the market system.
D. impact on U.S. corporations of taxing by the government.
Answer: C
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Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
According to economists
A) market capitalism is the best system available and some government intervention and regulation can either help or harm the social interest. B) market capitalism is the best system available and any government intervention and regulation will inevitably harm the social interest. C) centrally planned socialism is the best system available since governments generally make decisions that are in social interest. D) centrally planned socialism and pure market capitalism are equally capable of promoting social interest, but a mixed economy is an undesirable compromise between the two that will harm social interest.
The U.S. central bank ________
A) usually raises taxes to stabilize a slowing economy B) encourages higher savings rates by raising the national sales tax C) is known as the Federal Reserve D) all of the above E) none of the above
The opportunity cost of holding money is properly measured by the rate of interest on financial assets such as bonds
a. True b. False Indicate whether the statement is true or false