If the economy is experiencing an inflationary gap, classical economists argue that the Federal Reserve should lower interest rates
a. True
b. False
Indicate whether the statement is true or false
False
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Rent control is typically imposed ostensibly for the purpose of helping the poor. Why might you be able to argue that few poor people will actually be the beneficiaries of such controls?
What will be an ideal response?
When organizing a collective action, it is generally true that the larger the group the:
A. higher the costs and benefits per person. B. lower the costs and benefits per person. C. higher the costs and lower the benefits per person. D. lower the costs and higher the benefits per person.
If there is employment discrimination against minorities, this will cause the:
A. supply of their services to increase, and their wages to fall. B. demand for their services to decline, and their wages to fall. C. supply of their services to decline, and their wages to rise. D. demand for their services to decline, and their wages to rise.
Which statement is false, given what you know about the local substitution argument?
A. People in the town will buy their clothes with team logos on them, so the economic impact of that buying must be counted as additional money to the city from having the sports team there. Also, people in the town will go to the games and buy tickets, food, and souvenirs, causing the economy of the town to get better. B. People in the town will go to the games and buy tickets, food, and souvenirs, causing the economy of the town to get better. C. People in the town will buy their clothes with team logos on them, so the economic impact of that buying must be counted as additional money to the city from having the sports team there. D. People from out of town will go to the games and buy tickets, food, and souvenirs, causing the economy of the town to get better.