Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade four cookies for an additional ounce of milk
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies.
B) Rita will give some milk to Joe in exchange for cookies.
C) No trade will take place since they both prefer to have more milk and fewer cookies.
D) There is not enough information to make any predictions.
A
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The case for a "hands off" economic policy is based on the widely held belief that
A. Fiscal policy works but monetary policy does not. B. Discretionary policy can improve the economy in theory but is often impractical in practice. C. Monetary policy works but fiscal policy does not. D. Economic theory is inadequate to formulate effective discretionary policy.
Governments often use 2 other methods of intervention in the markets for farm products including:
What will be an ideal response?
Before the Great Depression of the 1930s, the majority of government spending took place at the ________ and after the Great Depression the majority of government spending took place at the ________
A) federal level; state level B) federal level; state and local levels C) state and local levels; federal level D) local level; federal level
Which of the following statements is true?
A) Because the federal income tax system is progressive, measuring poverty using after-tax incomes results in a higher poverty rate than if poverty is measured using before-tax incomes. B) In the United States, income remaining after federal taxes are paid is more equally distributed than income before taxes. C) If non-cash benefits such as food stamps and rent subsidies were added to the incomes of low-income families, poverty would be eliminated. D) If transfer payments such as Social Security payments to the retired and disabled were excluded from official statistics used to estimate the percentage of people with incomes below the poverty line, the amount of poverty in the United States would be much greater.