Compared to proportional-representation systems, two-party systems are thought to:
A. lead to more diverse views in the policy process.
B. create unwieldy combinations of policies within one platform.
C. offer a wider variety of platforms among which voters can choose.
D. be much less efficient and lead to very few compromises when voting.
Answer: B
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The most important advantage of discount policy is that the Fed can use it to
A) precisely control the monetary base. B) perform its role as lender of last resort. C) control the money supply. D) punish banks that have deficient reserves.
People are likely to want to hold more money if the interest rate
a. increases making the opportunity cost of holding money rise. b. increases making the opportunity cost of holding money fall. c. decreases making the opportunity cost of holding money rise. d. decreases making the opportunity cost of holding money fall.
Suppose that an individual consumes just hamburgers and soft drinks. Using a carefully-labeled diagram, derive the price-consumption curve that would result from a decrease in the price of hamburgers.
What will be an ideal response?
Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because
A. there is no opportunity cost of them to drive. B. they are not rational. C. the opportunity cost of riding a bus is too high for them. D. they do not behave according to the economic way of thinking.