We don't typically see wages __________ in response to an economic downturn because ____________.
A. rise; they are "sticky," and are slow to respond to shifts in the economy
B. rise; they cannot rise above the equilibrium in any circumstance
C. fall; they are "sticky" and are slow to respond to shifts in the economy
D. fall; they cannot fall below where they were previously set due to inflation
C. fall; they are "sticky" and are slow to respond to shifts in the economy
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In the circular flow model, which of the following owns the factors of production?
A) only federal, state, and local governments B) only households C) only firms D) both firms and households E) firms, households, and all levels of government
The Federal Reserve System consists of
A) one Federal Reserve Bank and 12 Federal Reserve districts, each with one branch bank. B) a main central bank located in New York, with 11 additional branch banks located across the country. C) 12 Federal Reserve Banks, each of which have a degree of independence from the U.S. government. D) 12 independent banks in the 12 Federal Reserve districts, each of which are owned and controlled by the federal government.
If the government is successful in internalizing the external costs of production in a market, then:
a. social costs will equal private costs. b. an inefficient level of output will be produced. c. social costs will exceed private costs. d. social costs will be less than private costs. e. social costs will fall to zero.
Anti-poverty programs
a. encourage saving among recipient groups. b. impose a very low marginal tax rate on income. c. are only made available to those with no other source of income. d. may discourage the poor from escaping poverty on their own.