In a market economy:
A. collective decision-making is more important than individual decision-making.
B. goods and services are distributed as if by an "invisible hand" to those who can not afford them.
C. profit provides an incentive to be productive.
D. the distribution of wealth is equitably distributed.
Answer: C
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Why did President George W. Bush feel the need for a stimulus package for the U.S. economy after September 11, 2001? As a conservative, what type of fiscal stimulus would be most appealing to President Bush?
Because monetary stimulus overwhelmed fiscal contraction in the United States during the 1992- 2000 period,
a. real GDP grew. b. real GDP decreased. c. the rate of inflation increased. d. the budget deficit increased.
The term tax incidence refers to
a. whether buyers or sellers of a good are required to send tax payments to the government. b. whether the demand curve or the supply curve shifts when the tax is imposed. c. the distribution of the tax burden between buyers and sellers. d. widespread view that taxes (and death) are the only certainties in life.
The Fed began paying interest on reserves in October 2008 . Holding all else constant, what effect would this have on the money supply?