The Peltzman study suggests that minimum standards of quality
a. overall create a net benefit for consumers by protecting them from dangerous products.
b. overall hurt consumers by limiting entry and raising prices.
c. are beneficial to consumers only when they are strictly enforced.
d. rarely have any significant effect on the market.
b. overall hurt consumers by limiting entry and raising prices.
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The Federal Reserve Act of 1913 was passed to
a. convert all banks to national banks b. check the overreach of powerful financial trusts c. allow banks to hold excess reserves d. allow banks to accept collateral as guarantees against outstanding loans e. prevent banks from accepting collateral as guarantees against outstanding loans
What did Keynes and Hayek believe about government central planning?
a. Both believed that central planning could be used to allocate resources efficiently. b. Both believed that perverse political incentives would undermine the ability of central planners to allocate resources efficiently. c. Keynes believed that government central planning could improve on market outcomes; Hayek disagreed, arguing that both political incentives and insufficient information would undermine their ability to do so. d. Keynes believe that central planning would fail because the policy-makers did not have sufficient information to plan efficiently; Hayek believed that efficient central planning was possible if political decisions were made democratically.
Which of the following programs would be opposed by philosopher John Rawls?
a. a negative income tax b. the Supplemental Security Income (SSI) program c. a tax plan creating a perfectly egalitarian income distribution d. Rawls would oppose all of the programs.
Otherwise legal transactions that go unreported or unrecorded are called
a. the underground economy. b. the shadow economy. c. the informal economy. d. All of the above are correct.