Adam Smith's behavioral assumption about humans was that people
A) typically act irrationally.
B) usually act in a rational, self-interested way.
C) are consistently greedy.
D) typically act randomly.
Answer: B
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Which one of the following is NOT a determinant of demand?
A) prices of related goods B) cost of inputs in production C) income D) future price expectations
In a partnership
A) each partner's liability is limited to their investment in the company. B) profits are taxed at both the corporate rate and the personal income tax rate. C) upon the death of a partner it may be necessary to sell the business. D) there is a separation of ownership and management like in a corporation.
Which of the following is an important difference between tariffs and import quotas?
a. Tariffs affect goods leaving the country to be sold, and import quotas affect goods coming in. b. The government receives revenue from tariffs but does not collect money for import quotas. c. Import quotas lower prices and increase consumer surplus, whereas tariffs do the opposite. d. Tariffs support the growth of domestic industry, and import quotas help foreign producers.
The Taylor rule helps explain the relationship between the Fed's ________ and ________
A) money supply target; economic conditions B) money supply target; the federal funds target C) federal funds target; the monetary growth rule D) federal funds target; economic conditions