What assumptions lead to the conclusion that final products are distributed efficiently among households?
What will be an ideal response?
People have different tastes and preferences, and they buy very different things in very different combinations. As long as everyone shops freely in the same markets, no redistribution of outputs among people will make them better off. Therefore the distribution of goods among households is efficient.
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Only paid workers are included in the Bureau of Labor Statistics' "employed" category
a. True b. False Indicate whether the statement is true or false
Draw the demand for and supply of the U.S. dollar in each of the following cases. Diagram and explain in words the effect of each of the following events in the short run. Make sure to properly label the axes. In each case, assume the two countries under consideration are important trading partners. (a) There is an increase in the real interest rates in the United States relative to Japan. (b)
Investment returns in the United States decrease relative to expected returns in Japan. (c) Inflation in Japan fell relative to the inflation rate in the United States. (d) The Japanese expect the value of the U.S. dollar to decline. (e) The Federal Reserve raised interest rates fearing the inflationary pressures of a booming U.S. economy. What will be an ideal response?
Which of the following is the best example of a near money?
A. a money market account B. a valuable painting C. a dollar bill D. a Treasury bond
Given that the characteristics of Social Security are determined through the political process, we would expect that young workers would _____ when given the opportunity to vote on the program
a. oppose increases in Social Security taxes b. oppose increasing the retirement age c. oppose means-testing of retirees d. be strongly in favor of the status quo