Which of the following is a microeconomics question?
A. Should Congress and the president take action to reduce global warming?
B. Is it sensible for a government to subsidize tobacco production?
C. Why do some countries grow faster than others?
D. Should the government attempt to influence the interest rate to lower inflation?
Answer: B
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Some parents struggling with back-to-school buys. "A couple of years ago, I was able to buy everything practically new," said Charles Lane-Bey, a U.S. Postal Service worker who's struggling to make ends meet
Suppose Charles has $10 to spend on back-to-school clothing for his son, and pants cost 50 cents and shirts cost $1. Which of the following combinations of pants and shirts is affordable? A) 10 pants and 6 shirts B) 7 pants and 7 shirts C) 3 pants and 8 shirts D) 6 pants and 2 shirts
Government regulations:
A. always seek to increase competition. B. sometimes protect monopoly power in certain industries. C. never protect monopoly rights. D. usually are ineffective.
When the government increases its demand for loanable funds, it causes the demand:
A. for loanable funds curve to shift to the right, which increases interest rates. B. for loanable funds curve to shift to the left, which increases interest rates. C. of loanable funds curve to shift to the right, which decreases interest rates. D. of loanable funds curve to shift to the left, which decreases interest rates.
The phenomenon that interest rates may be so low that increases in the money supply will have no impact on aggregate demand is called:
a) the horizontality of demand. b) the liquidity trap. c) the sterilization of money. d) monetary incapacitation.