In economic terminology, a buyer or seller who cannot affect the market price is called a:
A. price taker.
B. price maker.
C. price setter.
D. price signaler.
A. price taker.
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The group within the Federal Reserve System that determines the general course for the nation's money supply is the
a. Federal Monetary Oversight Committee b. Federal Advisory Council c. Board of Governors d. Department of Commerce e. Federal Open Market Committee
A useful rule of thumb called the "Rule of 70" states that if something grows at a constant rate of Z percent per year, it doubles in size approximately every __________ years
A) 70 - Z B) 70/Z C) Z/70 D) 70 × (Z/100)
Daniel notices that every year with a mild winter, his roses begin to bloom in February, but every year with a severe winter, his roses do not begin to bloom until April. He concludes that the severity of the winter is responsible for the month in which his roses begin to bloom. Daniel is
A. very probably correct in his conclusion that the severity of the winter is a cause of when his roses begin to bloom. B. probably misguided in that there is no apparent correlation or causation in this situation. C. definitely confusing correlation with causation. D. likely correct that there is causation, but the causation is more likely running in the opposite direction in that the initial blooming of his roses is the cause of the severity of the previous winter.
The "broken window fallacy"
a. explains why inflation is so high.
b. is a justification for the government to print more money.
c. is illustrated when a government program is justified not on its merits but on the number of jobs it will create.
d. has nothing to do with public policy.