Which of the following is one of the most important benefits of money in an economy?
a. Money allows for the exchange of goods and services.
b. Money allows for the accumulation of wealth.
c. Money makes exchange easier, leading to more specialization and higher productivity.
d. Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.
c. Money makes exchange easier, leading to more specialization and higher productivity.
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In 2000, three candidates appeared on virtually all ballots in the US Presidential election: George W. Bush, Al Gore and Ralph Nadar. Bush arguably won the election by 537 votes in Florida where Ralph Nadar received nearly 100,000 votes. It is often argued that Al Gore would have won the election had Ralph Nadar not been on the ballot in Florida. Discuss how this suggests that the social choice process the US uses to elect Presidents does not satisfy the Independence of Irrelevant Alternatives (IIA) assumption in Arrow's theorem.
What will be an ideal response?
Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.
A. $50,000,000; economic growth; transfers B. $500,000; transfers; economic growth C. $500,000,000; transfers; economic growth D. $5,000,000; transfers; economic growth E. none of the above
Keynes was especially interested in explaining movements of ________ because he wanted to explain why the Great Depression had occurred and how government policy could be used to increase ________ in a similar economic situation
A) aggregate output; wages B) aggregate output; employment C) wage rates; wages D) wage rates; employment
To find a firm’s total revenue at every quantity, all you need to know is
A. the demand curve for its product. B. the demand curve for its product and its total cost. C. its profit-maximizing price and quantity. D. its total profit curve.