If the Fed wants to reduce the inflation rate, it should lower the discount rate.
a. true
b. false
Answer: b. false
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Which of the following uses of tax revenues collected by the government leads to increased capital deepening?
A) Medicare payments B) Social Security payments C) increased foreign aid D) building roads
Supply will become more elastic when
A) a time period lengthens. B) the time period shortens. C) the good is important to consumers. D) there are good substitutes for the goods.
A free rider is a person who
a. is harmed by another's actions b. is subject to a negative externality c. receives benefits from someone else's market activity but does not pay for them d. pays less than the full value for a good e. wins the state lottery on a ticket he found
The typical welfare family would be
A. A single woman with 6 or 8 children. B. A single woman with 1 or 2 children. C. A couple about 70-80 years old. D. A childless male in his 30s or 40s.