Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?
a. Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
b. The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
c. Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
d. None of the above are correct.
d
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At the national level, higher saving rates lead to ________ and higher standards of living.
A. greater investment B. slower growth C. greater current consumption D. crowding out
Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007?
A) Global saving and investment imbalances B) Financial market innovation C) Deeper levels of integration across financial markets D) Challenges and failures in financial regulation
The Dodd-Frank bill created an agency to monitor markets for asset price bubbles and the buildup of systemic risk. This agency is called the
A) Resolution Trust Authority. B) Board of Governors. C) Financial Stability Oversight Council. D) Macroprudential Supervisory Agency.
"When the balance of payments sums to zero is the only situation in which there is an equilibrium." Do you agree or disagree? Why?
What will be an ideal response?