Which of the following terms implies the greatest degree of confidence in an economic generalization?
A. Hypothesis.
B. Comparison.
C. Principle.
D. Anomaly.
Answer: C
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The powers of the Federal Reserve System do not include: a. the ability to buy and sell U.S. government securities
b. the ability to extend loans to commercial banks. c. the ability to provide deposit insurance for customers of member banks. d. the ability to impose reserve requirements on both member and nonmember commercial banks. e. the authority to clear checks.
If the federal government is seeking to reduce large budget deficits, the flexibility of fiscal policy is
a. limited when trying to combat inflation. b. increased when trying to combat unemployment. c. limited when trying to combat unemployment. d. unaffected whether trying to combat inflation or unemployment.
Good weather in wheat-producing regions of the world increased the wheat crop. As a result, wheat prices decreased worldwide. Which of the following statements best explains the situation?
a. The supply of wheat increased b. The demand for wheat decreased c. The demand for wheat decreased and the supply of wheat decreased d. The demand for wheat increased and the supply of wheat increased
The United States is a leading exporter of wheat. What explains the source of the comparative advantage of the United States in wheat production?
A) positive externalities B) investment by multinational firms such as Archer-Daniels-Midland and Tyson Foods Inc. C) climate and soil conditions in the United States which are well-suited for wheat production D) a large supply of unskilled labor