Suppose that in each of four successive years producers sell more of their product and at lower prices. This could be explained:
A. by small annual increases in supply accompanied by large annual increases in demand.
B. in terms of a stable supply curve and increasing demand.
C. in terms of a stable demand curve and increasing supply.
D. as an exception to the law of supply.
Answer: C
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________, in economics, refers to a preference for equal outcomes within the target population
A) Randomness B) Rationalism C) Fairness D) Liberalism
The first step toward reducing negative externalities or maintaining them within acceptable bounds, according to the argument of the textbook, is
A) constructing an exhaustive list of all negative externalities. B) creating a central planning authority for negative externalities. C) cultivating such civic virtues as courtesy and tolerance. D) halting population growth. E) prohibiting activities whose costs are greater than their benefits.
An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately
A) $250. B) $272. C) $288. D) $300.
In the United States, major money policy decisions are made by the ______.
a. 12 banks that comprise the Fed b. banks that have ownership of the Fed c. president of the United States with approval from the Senate d. Federal Reserve Board of Governors and the FOMC