The Fed can ________ in the economy.
A. change the supply of money, but not the interest rates
B. change interest rates, but not the supply of money
C. change both interest rates and the supply of money
D. change neither interest rates nor the supply of money
Answer: C
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Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of
A) a tradable exchange contract. B) a Pigovian solution to an externality situation. C) a Coasian solution to an externality situation. D) command-and-control policy.
Some of the most renowned examples of hyperinflation occurred in Austria, Hungary, Germany and Poland shortly after
A) the collapse of the Austro-Hungarian Empire. B) World War I. C) World War II. D) the fall of the Berlin Wall.
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is:
a. above the labor supply curve under perfect competition. b. the market supply curve of labor. c. below the labor supply curve under perfect competition. d. changed because workers are now more willing to supply labor. e. perfectly horizontal.
Suppose everyone in a town prefers spending on improved public transportation systems instead of public parks, and prefers spending on public parks instead of building a public zoo. A voting system that would ensure that zoo funding would never beat spending on transportation would demonstrate which criteria for an ideal voting system?
A. No dictator B. Transitivity C. Independence of irrelevant alternatives D. Unanimity