The Jones family sells peaches at market price. Which of the following explains why they do this?
a. many buyers and many sellers in their market
b. few buyers and few sellers in their market
c. few buyers and many sellers in their market
d. many buyers and few sellers in their market
Answer: a. many buyers and many sellers in their market
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Total reserves of private banks are
A) federal reserve notes. B) all customer deposits. C) deposits held at the Fed and vault cash. D) the minimum amount banks need to hold against time deposits.
The three ways of reducing a government budget deficit are to
A) decrease government spending, reduce consumption, increase the tax rate. B) increase government spending, decrease real income, reduce the tax rate. C) decrease government spending, increase real income, reduce the tax rate. D) decrease government spending, increase real income, increase the tax rate.
Instrumental Variables regression uses instruments to
A) establish the Mozart Effect. B) increase the regression R2. C) eliminate serial correlation. D) isolate movements in X that are uncorrelated with u.
The incentive to work is an ingredient of the negative income tax because:
a. if families do work, they will be eliminated from the program. b. if families don't work, they will be eliminated from the program. c. the more income earned in the workplace, the higher the family's after-tax income. d. the more income earned in the workplace, the higher the payment from the government. e. the amount earned in the workplace is not subject to income taxes.