Shadow prices are designed to take into account:
A. government intervention.
B. social and moral pressures.
C. market forces.
D. the underground economy.
Answer: B
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Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets
A) rise; depreciate B) fall; appreciate C) rise; appreciate D) fall; depreciate
Which of the following has served most recently as Chairman of the Board of Governors of the Federal Reserve System?
A) Nancy Pelosi B) Alan Greenspan C) Ben Bernanke D) Paul Volcker
This oligopolist is a ____.
A. cut-throat competitor making a profit
B. cut-throat competitor taking a loss
C. colluder making a profit
D. colluder taking a loss
Which of the following is a problem with the price system that can lead to fluctuations in output?
A. The price system works silently in the background. B. Prices can be slow to adjust. C. Prices may be flexible. D. All of these