The term "business cycle" refers to ________.
A) the periodic increases and decreases of the economy
B) the periodic purchases of goods and services by the government
C) the increases and decreases in the rate of inflation
D) the periodic growth of the Federal Reserve system
E) the periodic increases and decreases in the GDP due to seasonal factors
A) the periodic increases and decreases of the economy
Explanation: A) Over time, the economy naturally goes through periodic increases and decreases in what is known as the business cycle.
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From left to right, the horizontal axis of the Lorenz curve ranks households from
A) smallest to largest. B) largest to smallest. C) poorest to richest. D) richest to poorest.
Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of The Waco Kid's cowboy hats is $40
A) The Waco Kid will produce four hats. B) producer surplus from the first hat is $40. C) there will be a surplus; as a result, the price will fall to $24. D) producer surplus will equal $28.
The legislation passed in 1946 that requires governmental institutions to promote "maximum employment, production, and purchasing power" is called:
A) Full Employment and Balanced Growth Act. B) Federal Reserve Act. C) Employment Act. D) Unemployment Act.
Cost-benefit analysis cannot be applied to collective or public choice decision-making
a. True b. False Indicate whether the statement is true or false