The U.S. government will probably return soon to a system of paper money backed by gold
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 4,000 pounds
A) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently low. B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. D) producers should raise the price to $9 in order to sell the quantity demanded of 4,000.
Disadvantages faced by the South in fighting the Civil War include
a. an inadequate supply of free, military-aged males. b. limited industrial capacity. c. shortages of horses and mules. d. the lack of an effective administrative machinery for tax collection. e. All of the above.
In the Coen Brothers' movie The Hudsucker Proxy the board of directors picks someone to run the company who they believe will make poor decisions. If things turn out as they plan,
a. the price of a share of stock in the Hudsucker corporation should decline as the demand for shares falls. b. the price of a share of stock in the Hudsucker corporation should rise as the demand for shares rises. c. the price of a share of stock in the Hudsucker corporation should decline as the supply of existing shares falls. d. the price of a share of stock in the Hudsucker corporation should rise as the supply of existing shares rises.
The monetarists believe that an increase in the money supply of about 4% per year, regardless of economic conditions, is a good monetary policy. Why was 4% chosen?
A. It reflects the fact that the output of the economy has been growing at about 3 to 4% per year, and a 4% increase in the money supply would tend to stabilize the price level. B. By equating the money supply growth rate and the unemployment rate, the monetarists believe that the output of the economy will increase. C. By restricting the increase in money supply to 4%, the monetarists hope to limit fluctuations in the price trend to 4% and stabilize velocity. D. Price fluctuations have been shown to be historically more than 4%. By a steady 4% increase in the money supply, the monetarists hope to drive prices down.