Of the three major economic questions, which of the following is the best example of a "How?" question?
A) Should we produce more heavy fleece coats?
B) Should we spend more on health care?
C) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?
D) Should we eat more oatmeal?
E) Should we build log homes or build factories from bricks?
C
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point d?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
The MP curve represents
A) the Fed's monetary policy actions in setting a target for the federal funds rate. B) the relationship between the money supply and the price level. C) a relationship between the real interest rate and manufacturing production. D) the relationship between real interest rates and potential GDP.
Ricardian equivalence refers to
a. the equivalence of taxes and revenues in fiscal policy. b. the fact the households incorporate inflationary expectations in calculating interest payments. c. the equivalence of imports and exports in an open economy. d. the possibility that households may say save now so that they can pay the higher taxes later if there is a tax cut at the present time which drives up future interest payments. e. none of the above.
The organization that was set up to promote the interests of a loose group of craft unions was the
a. Knights of Labor b. Congress of Industrial Organizations c. Cigar Maker's Union d. Welder's Union e. American Federation of Labor