The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending.
B. recessionary gaps.
C. expansionary gaps.
D. unemployment.
Answer: B
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Suppose that in a PPF graph, wheat is on the vertical axis and jets are on the horizontal axis. Moving down along the PPF, the
A) number of jets increases and the opportunity cost of jets decreases. B) number of jets increases and the opportunity cost of jets increases. C) opportunity cost of jets and wheat both increase. D) amount of wheat increases and the opportunity cost of wheat increases. E) amount of wheat increases and opportunity cost of wheat decreases.
When a firm practices perfect price discrimination,
a. The demand curve is very inelastic b. The demand curve is the marginal revenue curve c. The demand curve is very elastic d. The marginal cost curve is the average cost curve
Which of the following tends to reduce bank failures as the result of bank runs by depositors?
a. The Federal Deposit Insurance Corporation b. The Federal Open Market Operations Committee c. The comptroller of the currency d. The Senate Banking Committee
How might consumer credit laws contribute to the empowerment of individuals?
A) Seller and lender abuses are reduced under consumer credit laws. B) Consumers are able to borrow money regardless of their credit history. C) Lenders can choose not to extend credit to individuals with a poor credit rating. D) Consumer credit laws prevent individuals from borrowing money, keeping them out of debt.