Because economists have different values, like everyone else, they
a. tend to be self centered, so positive economics is impossible
b. ignore politics
c. use abstraction to be realistic
d. may disagree, even though economic theory is based on positive statements
e. try to be right all the time
D
You might also like to view...
In the short run, if the Fed wants to raise the federal funds rate, it
A) instructs large commercial banks to sell government securities in the open market. B) instructs the New York Fed to buy government securities in the open market. C) instructs the New York Fed to sell government securities in the foreign exchange market. D) instructs the New York Fed to sell government securities in the open market. E) tells large commercial banks to raise their interest rates.
The free-rider problem can arise when consumption of a good is
A) rival. B) excludable. C) nonrival but excludable. D) nonexcludable.
Which of the following is a free rider?
a. Butch breeds the feared pit bulls, and his neighbors now erect fences around their property. b. Fred watches many public television programs, but he has never sent in a contribution. c. Barry steals candy from the store where he works. d. Betty regularly uses the local public library. e. Joe drives 20,000 miles a year on public streets, but he pays no more in taxes than Sam, who only drives 1,000 miles.
Suppose the required reserve ratio is 3 percent, and currency and reserves total $10 million. The maximum money supply that can be supported is:
a. $13 million. b. $30 million. c. $97 million. d. $333.3 million.