When you use money to purchase groceries, money is functioning as a store of value.
Answer the following statement true (T) or false (F)
False
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The costs of economic growth include all of the following except consumption sacrificed for:
A. acquiring new human capital B. research and development into new technologies C. physical capital formation D. additional hours of leisure
Estimates from large macroeconometric models of the U.S. economy suggests that it takes over ________ for monetary policy to affect output and over ________ for monetary policy to affect the inflation rate
A) 1 year; 2 years B) 2 years; 1 year C) 1 year; 6 months D) 6 months; 1 year
In what sense do externalities cause the "invisible hand" of the marketplace to fail?
a. Externalities lead to government intervention in markets, which exacerbates the problems associated with externalities. b. Externalities result in prices that are too high for many consumers to pay. c. Markets fail to produce the maximum total benefit to society when positive or negative externalities are present. d. Markets produce too little of a good when positive or negative externalities are present.
One advantage about an emissions permit system is that
A. it creates a “license to pollute,” sure to be popular with environmentalists. B. it reduces uncertainty about the quantity of pollution that will be emitted. C. it is a direct control system and avoids the inefficiencies of a market. D. permits can be handed out on the basis of need to protect firms from high costs.