Distribution of HIV/AIDS drugs without charge to victims of the disease in Africa
A. conflicts with the incentives of drug companies to bring such drugs to market.
B. must be done because it is the only ethical course of action.
C. could only be undertaken by faith-based organizations, which can operate with no cost.
D. cannot be done because it would unconscionably inflate drug company profits.
Answer: A
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Believers in a fixed-rule approach to stabilization policy propose that
A. Congress should balance the high employment budget. B. the Fed should keep the money supply growth constant. C. the economy be stabilized by automatic mechanisms. D. All of these responses are correct.
Stark Industries decides to decrease its production for the current quarter because the demand for its product had fallen significantly during the last two years for the same quarter. The strategy adopted by Stark Industries is based on the theory of _____
a. absolute advantage b. rational expectations c. adaptive expectations d. sticky wages
Which of the following is an example of the Fed making monetary policy?
A) Increasing government spending by $30 million B) Decreasing the tax rate on interest rate earnings C) Decreasing the discount rate to 2% D) Increasing subsidies to solar energy producers
?Strawberries (pounds) 
Consider the above table. Assuming the government imposes a price floor on strawberries of $8 per pound, what would be the likely result?
A. No change, equilibrium would prevail. B. a shortage of 2,000 pounds of strawberries C. The quantity demanded of strawberries would fall to zero. D. a surplus of 2,000 pounds of strawberries