Refer to Figure 6.4. If the price of computers is $1,000, then expenditures on computers is represented by the area:
A. c + d
B. c
C. b + c
D. a + b + c
A. c + d
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The basic federal "antitrust" law prohibiting combinations in restraint of trade and attempts to monopolize is the
A) Clayton Act. B) Miller-Tydings Act. C) Robinson-Patman Act. D) Sherman Act. E) Taft-Hartley Act.
The monetarists
a. focus on the role of money as being the most important variable impacting aggregate demand. b. recommend a monetary rule which calls for a stable rate of growth in the money supply of approximately 3 to 5 percent annually. c. recommend government balance its budget. d. All of the above.
Which economic concept is the closest to the saying, "There's no such thing as a free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
The banking system of the United States is a fractional reserve system. What dangers does this pose for the safety of the banking system?