Which statement is true?
A. Our money supply is fixed by law and can be raised by only a very small percentage each year.
B. Our money supply is backed by gold.
C. Credit cards are a form of money.
D. Money makes an excellent store of value during times of inflation.
E. One of the basic jobs of money is a standard of value.
E. One of the basic jobs of money is a standard of value.
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If an oligopolistic firm in a game theory kind of market cuts price, in the long run
a. the other firms will follow and all firms will be worse off b. the price cutter will be worse off if other firms don't cut price as well because revenue equals price times output and since price was cut, its revenue must be less c. its market share and profit will increase at the expense of its rivals d. the other firms will follow and all firms will be better off because at lower prices, industry sales will increase e. it will become a monopoly, having outsmarted its rivals, and will be able to raise the price again. That's how the game is played.
If Wisconsin cheddar cheese sells for $3.00 per pound in the United States and for 27.90 pesos in Mexico, what is the exchange rate between the dollar and the peso (assuming PPP holds)?
A. $1 = 2.79 pesos B. $1 = 7.90 pesos C. $1 = 9.30 pesos D. $1 = 27.90 pesos
Which of the following was true of the actions of the Federal Reserve in response to the recession of 2008?
a. The Fed shifted toward a highly restrictive monetary policy in 2008, which was a major cause of the recession. b. The Fed continued to focus only on price stability and therefore it expanded the money supply at a slow and steady rate throughout the recession. c. The Fed introduced several new procedures for the conduct of monetary policy and substantially increased bank reserves as the recession worsened. d. The Fed continued to purchase and sell only U.S. Treasury bonds when conducting open market operations to control the money supply.
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
To an economic naturalist, this model helps explain why political candidates:
A. are loyal to their political parties. B. work to bring federally funded projects to their home districts. C. move toward more centrist positions during campaign season. D. take more extreme positions than are held by the general population.