When prices rise, consumers and businesses hold larger money balances. This reduces the supply of loanable funds, increases the interest rate, and discourages both consumption and investment. This process is called the
a. interest rate effect.
b. real balance effect.
c. investment effect.
d. disinvestment effect.
A
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In the United States in 2014, the percentage of firms that employed more than 200 workers and did not offer health insurance as a fringe benefit to the workers was about
A) 2%. B) 29%. C) 44%. D) 98%.
If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption. B. more to spend and will reduce their consumption. C. less to spend and will increase their consumption. D. more to spend and will increase their consumption.
A merit goods is
a. a public good provided by government that people deem necessary and important b. a good that the market does not produce in quantities and at prices that governmentbelieves is warranted c. the highest quality of a public good that government produces d. a public good produced in the most efficient way e. a civilian public good as opposed to a national security good produced bygovernment
Libertarians believe that in considering economic fairness, one should primarily consider the
a. outcome of the system. b. process by which outcomes arise. c. maximin criterion. d. maximization total social utility.