Smartphones are examples of negative externalities
a. True
b. False
Indicate whether the statement is true or false
False
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Many scholars believe that the importance of research and development is understated. Efforts in research and development can include: a. the introduction of new products. b. management improvements
c. production innovations. d. any of the above.
Which of the following is the best way for a student of economics to make sensible judgments about real-world markets and real-world governments?
a. In the real world, government action is always the best way to control markets. b. We must see the strengths and weaknesses of both markets and government. c. Markets’ lack of flexibility must produce unwanted results, such as monopolies and worker oppression. d. Government action is imperfect and does not reflect majority views, so it has no useful role to play in regulating markets.
Answer the following statement(s) true (T) or false (F)
1. The government can influence the economy through its fiscal policy by making changes in the money supply. 2. When the Federal Reserve Bank buys or sells U.S. securities, it changes the level of reserves in the banking system, which has an effect on interest rates. 3. The discount rate is the interest rate banks are charged when they borrow money from the Fed. 4. The Fed relies primarily on changes in the reserve requirement (the minimum amount of money banks must hold in reserve to cover deposits) to ease or tighten the money supply.
Over a 10-year period, the Consumer Price Index doubled. On the basis of this information we can say that the average annual rate of inflation over this period was approximately:
A. 5 percent. B. 9 percent. C. 10 percent. D. 7 percent.