A critical function of the government in facilitating the operation of a market economy is
A) producing goods and services for low-income households.
B) setting up and enforcing private property rights.
C) ensuring an equal distribution of income to all citizens.
D) controlling the market prices of food items.
Answer: B
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The two main tools of macroeconomic policy include monetary policy, and fiscal policy, which involves __________ spending.
A. business B. government C. household D. capital market
If protective import-restricting tariff are imposed by a country, in the majority of cases that nation's consumers end up
A) paying a lower price and consuming more of the good than they otherwise would. B) paying a lower price and consuming less of the good than they otherwise would. C) paying a higher price and consuming less of the good than they otherwise would. D) paying a higher price and consuming more of the good than they otherwise would.
An increase in the output price will increase the firm's demand for labor, all else equal
a. True b. False Indicate whether the statement is true or false
If autonomous consumption increases, the size of the multiplier would
A. increase. B. remain constant. C. decrease. D. either increase or decrease depending on the size of the change in autonomous consumption.