The “isms”
? Capitalism
? Private ownership
? Decentralized decision making
? Socialism
? The government owns all resources and makes all production decisions
? Note, this is not the same thing as communism ? Public ownership & centralized decision making ? See Karl Marx and communism
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The price elasticity of demand for DVDs is 2. If the price of a DVD increased by 2 percent, the quantity demanded will ________
A) decrease by 2 percent B) not change C) decrease by 4 percent D) decrease by 1 percent
The Fed conducts an open market purchase of Treasury bills of $10 million. If the required reserve ratio is 0.10, what change in the money supply can be expected using the oversimplified money multiplier?
a. $100 million b. $10 million c. 0 d. ?$10 million e. ?$100 million
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, one necessary condition to alleviate the externality is that
A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.