In a market economy, resources are allocated:
a. by central planners using a price system
b. by decentralized planners at the local level.
c. by individual decision makers responding to market prices.
d. by government bureaucracies because of the absence of a price system.
c
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Which of the following is an example of rent seeking?
a. Enrique offers large donations to politicians if they promise to support his causes. b. Gennifer donates small amounts to many politicians throughout the year. c. Christa regularly writes letters to her representatives urging them to support certain policies. d. Martin makes a large donation to a special interest group whose work he admires.
Among all workers in the U.S. with PhDs, ________ percent are foreign born.
A. 24 B. 1 C. 5 D. 90
Monetary restraint is associated with all of the following except
A. A decrease in aggregate demand. B. An increase in the reserve requirement. C. A decrease in interest rates. D. A decrease in the money supply.
A determinant of the supply of loanable funds is:
A. current economic conditions. B. expected profit on an investment. C. investors’ confidence. D. All of these are determinants of the supply of loanable funds.