When benefit-cost analysis is used to facilitate U.S. public policy decisions,
a. the discount rate is selectedby the individual policy maker
b. no adjustment can be made for inflation, since the inflation rate is not known in advance
c. the discount rate used should reflect the social opportunity cost of funds
d. only incremental costs are adjusted for time differences
c. the discount rate used should reflect the social opportunity cost of funds
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Make a case for income inequality
When the demand for grapes increases and the supply of grapes decreases at the same time, we can predict that the: a. price of grapes will fall
b. price of grapes will rise. c. quantity of grapes exchanged will fall. d. quantity of grapes exchanged will rise.
The majority of American workers are employed in the service sector of the economy
a. True b. False Indicate whether the statement is true or false
In order to decrease the money supply, the Fed can
A. Raise the reserve requirement, increase the discount rate, or buy bonds. B. Lower the reserve requirement, decrease the discount rate, or sell bonds. C. Raise the reserve requirement, increase the discount rate, or sell bonds. D. Lower the reserve requirement, increase the discount rate, or buy bonds.