The optimal allocation of resources is found:
A. where MB = MC.
B. at every point along a production possibilities curve.
C. where the marginal benefit is at its greatest.
D. where the marginal cost is at its lowest.
Answer: A
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The index most widely used by the government and the private sector to measure changes in the cost of living is the
A) Consumer Price Index. B) Producer Price Index. C) the chain-weighted price index. D) the GDP deflator.
Decisions by depositors to increase their holdings of ________, or of banks to hold ________ will result in a smaller expansion of deposits than the simple model predicts
A) deposits; required reserves B) deposits; excess reserves C) currency; required reserves D) currency; excess reserves
Which of the following is a disadvantage to monetary targeting?
A) It relies on a stable money-inflation relationship. B) There is a delayed signal about the achievement of a target. C) It implies larger output fluctuations. D) It implies a lack of transparency.
In 1886, what did the U.S. Supreme Court rule in Wabash, St. Louis, and Pacific Railway v Illinois?
(a) Only the federal government could regulate commerce across states. (b) Only the states had the right to regulate commerce across states. (c) Neither the federal or state governments had the right to regulate across states. (d) Railroads were not subject to any government regulation, state or federal.