Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A. monetary policy.
B. discretionary fiscal policy.
C. exchange-rate policy.
D. interest-rate policy.
Answer: B
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In the United States from 1960 to 2010, the largest positive contribution to national saving was from:
A. the government budget deficit. B. the public sector. C. household saving. D. business saving.
"The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased
This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement. A) The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluorescent light bulbs fell. B) The statement is false because it confuses the law of demand with the law of supply. C) The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease. D) The statement is false because compact fluorescent light bulbs producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.
An increase in the demand for orthodontic services leads to
A) an increase in the supply of orthodontists. B) a rise in the rates of dental insurance. C) lower prices for orthodontic care. D) an increase in the demand for orthodontists.
Which of the following would prevent a market from being classified as perfectly competitive?
a. there are many buyers and sellers in the market b. it is easy for new firms to enter the market c. it is easy for existing firms to exit the market d. buyers perceive significant differences among the products of different sellers e. each buyer purchases only a tiny fraction of the total market quantity