One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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The relationship between distance traveled in 5 hours and speed shown in the figure above is
A) direct, linear. B) inverse, linear. C) direct, non-linear. D) inverse, positive. E) direct, negative.
Which factor of production earns most income in the United States?
A) capital B) labor C) money D) entrepreneurship
The production possibilities frontier illustrates
A. the constant rate of technological progress. B. the fundamental concept of scarcity. C. the rapid growth of the U.S. economy. D. that guns always trade for butter.
In 2008, the Fed responded to the financial crisis by:
A. offering nearly unlimited short-term financing to any bank that suddenly found itself short on cash. B. increasing the interest rates to encourage people to save, so banks would have more money on hand to lend. C. doing nothing, and allowing the automatic stabilizers to bring the economy back to its long run equilibrium. D. reducing money supply.