The real return on bonds is
A) 0.
B) r.
C) R.
D) i.
B
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Consumer surplus is
A. equal to the amount consumers pay for a good. B. the value consumers get from a good but do not pay for. C. the value consumers do not pay because of a discount by supplier. D. the value consumers get from a supplier.
List the reasons why the actual multiplier, which is estimated to be less than 2 for the U.S. economy, is much less than what the oversimplified formula suggests.
What will be an ideal response?
It took several decades for advances in computer technology to have a significant impact on the economy. This illustrates the fact that
A. technologies cannot have an impact until government regulation catches up. B. people are initially irrationally suspicious of new technology and refuse to accept it until some time has passed. C. technologies need to mature before they reach the point where they can have an impact. D. new technology is not really needed; it tends to be a way for retailers to boost sales by selling people things they do not really need.
Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?
A) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services. B) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies. C) The growing demand for corn by ethanol producers has led to a surge in the price of tortillas, a staple in the Mexican diet. To quell public outcry over rising tortilla prices, the Mexican government released government corn stocks at prices well below the market, and pressured states to impose price ceilings on tortillas. D) Some U.S. colleges cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.