Economic efficiency
What will be an ideal response?
A state in which all potential gains from trade have been realized. An action is economically efficient only if it creates more benefits than costs.
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For barter to occur there has to be
A) a commodity to serve as a medium of exchange. B) a single coincidence of wants. C) a double coincidence of wants. D) a formal market where prices are quoted.
If there are no changes in inflation expectations, a sale of government bonds by the Fed in the open market will cause ________
A) both the federal funds rate and long-run expected real interest rate to rise B) both the federal funds rate and long-run expected real interest rate to fall C) the federal funds rate to fall and the long-run expected real interest rate to rise D) the federal funds rate to rise and the long-run expected real interest rate to fall
Economic growth is a sustained expansion of production possibilities measured as the increase in ________ over a given period
A) capital per person B) population C) real GDP D) real GDP per person E) the standard of living
In 2012, direct government purchases equaled ________ percent of federal outlays
A) 42 B) 71 C) 26 D) 55