The evidence on the question of Head Start effectiveness suggests that
A. Head Start children have an advantage over equally-situated children on first-grade tests of reading and verbal skill.
B. Head Start children have an advantage over equally-situated children on tenth-grade tests of reading and verbal skill.
C. there is no effect of the program whatsoever.
D. Head Start children have an advantage over equally-situated children on the SAT.
Answer: A
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The Fed
A) distributes Federal Reserve notes, which are paper currency. B) is responsible for conducting U.S. fiscal policy. C) has 15 Federal Reserve banks and governing boards in New York and Chicago. D) is responsible for minting coins.
A problem with the infant industry argument is that
A) it is too restrictive in targeting new industries to protect. B) it does not protect the most important new industries in a country. C) it is almost impossible to eliminate the tariff once the industry matures. D) it allows infant industries to mature so that tariffs can be eliminated.
Suppose that interdiction efforts have stemmed the flow of illegal drugs into the United States. If there is no change in demand, this leads to higher prices for these substances. The result is an increase in crime as users attempt to maintain their now more expensive habits. Economists would call this effect
A. the illusion of rationality. B. an externality. C. the cost disease of personal services. D. inflation. E. unemployment.
Policymakers' attempts to use the Phillips curve to reduce the unemployment rate below the natural rate
A. will be successful if monetary policy is used. B. will be unsuccessful if monetary policy is used since monetary policy leads to higher prices. C. will be unsuccessful since workers' expectations adjust to attempts to reduce unemployment below the natural rate. D. will be successful since the Phillips curve shows the relationship between the inflation rate and the unemployment rate.