According to the aggregate supply drawn under the monetarist view, which of the following would lead to a higher price level?
A. The purchase of bonds in the open market by the Fed.
B. An increase in the discount rate.
C. An increase in the reserve requirement.
D. A decrease in the money multiplier.
A. The purchase of bonds in the open market by the Fed.
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The market-friendly approach to development emphasizes
a. self-interested behavior of public officials in LDCs. b. the dependence of LDCs on former colonial powers. c. the inherent efficiency of markets in developing countries. d. that markets in LDCs fail sometimes and selective interventions can promote economic development.
Answer the following statements true (T) or false (F)
1. In the United States (as of 2013) the age group with the highest percentage of people living in poverty was age 65 and older. 2. The poverty trap is greater for working mothers than for nonworking mothers. 3. The federal government helps fund Medicaid, but each state is responsible for administering the program, determining the level of benefits, and determining eligibility. 4. A Lorenz curve is a graph that compares the cumulative income actually received to a perfectly equal distribution of income. 5. Economists use the demand and supply model to reason through the issues of income inequality. According to the law of supply and demand, if supply increases, then demand must decrease.
Which of the following is NOT a property of isoquants?
A. Isoquants curves are thin. B. Isoquants may slope upward or downward. C. Isoquants for the same technology never cross. D. Higher-level isoquants lie farther from the origin.
Economics seeks to use only positive analysis to
A. provide normative values. B. explain what is wrong with people. C. provide a value-free analysis. D. seek the best answer.