The price system
A. is the only way to allocate goods.
B. is inefficient.
C. requires government help to allocate goods.
D. automatically distributes scarce goods.
Answer: D
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Which of the following is true?
a. If the Fed wants to increase the money supply, it should increase the interest rate it pays banks on their excess reserves. b. When the Fed reduces the interest rate paid on excess reserves, it increases the incentive of commercial banks to hold excess reserves. c. If the Fed wants to reduce the future growth rate of the money supply, it could do so by increasing the interest rate it pays banks on excess reserves. d. When the Fed increases the interest rate it pays on excess reserves, this encourages banks to extend more loans and thereby increase the money supply.
Almost all economists agree that tariffs and import quotas
a. reduces general economic welfare. b. increases general economic welfare. c. have no effect on general economic welfare. d. stimulate a less than fully employed economy.
An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is _____
Fill in the blank(s) with the appropriate word(s).
As diseconomies of scale begin to outweigh the economies of scale,
A. the long-run average cost curve begins to slope upward. B. the long-run average cost curve begins to slope downward. C. the long-run average cost curve becomes horizontal and continues this way into infinity. D. the long-run average cost curve is unaffected.