Which of the following is TRUE?
A) Lotteries work best when a resource can serve just one user at a time in a sequence.
B) A market price always allocates resources better than a command system.
C) In the United States, how tax dollars are allocated among competing uses is an example of how resources are allocated by majority rule.
D) Force has never played an important role in allocating scarce resources.
C
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Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities curve, it is clear that:
A. Country A should specialize in cars and Country B should specialize in trucks, and both could benefit from trade. B. Country A should specialize in trucks and Country B should specialize in cars, and both will benefit from trade. C. Country A will not benefit from trade. D. Country B will lose by trading with Country A.
Investment depends on the ________ interest rate because higher inflation will ________ the value of the dollars with which the firm will repay the loan.
A. real; increase B. nominal; increase C. real; decrease D. nominal; decrease
Which one of the following statements is true?
A. Money flows from households to firms for resources. B. Money flows from households to foreign economies for exports. C. Money flows from government to firms for resources. D. Money flows from firms to households for resources.
The interest rate decisions made by the Federal Open Market Committee:
A. can be overridden by the U.S. Senate by a two-thirds majority. B. can be overridden by the President. C. cannot be overridden by anyone outside of the Federal Reserve. D. can be overridden by the Secretary of the Treasury.