A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by
A. selling newly issued government bonds directly to the central bank.
B. buying newly issued government bonds directly from the central bank.
C. purchasing government bonds from the public.
D. selling government bonds to the public.
Answer: A
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The "law of demand" states that, other thing remaining the same, the higher
A) the price of a good, the lower is the demand for this good. B) consumers' incomes, the greater is the demand. C) the price of a good, the higher is the quantity demanded. D) the price of a good, the smaller is the quantity demanded.
Define the utility possibilities frontier. Explain what it means when society is inside the utility possibilities frontier. Explain what it means when society is on the utility possibilities frontier
Explain what determines the point that society arrives at on the utility possibilities frontier.
The biggest benefit to members of a union is:
A. being able to bargain as a group. B. keeping non-union workers out of their industry. C. negotiating minimum wage legislation. D. getting raises without having to do any work.
Monetarism is a school of thought put forth by Milton Friedman. He argued that the economy would ordinarily
A) be below potential GDP. B) be at potential GDP. C) be unstable. D) be above potential GDP.