Prices play a role in a market
A) because they distribute scarce goods to those consumers who value them most highly.
B) because when prices are in equilibrium, product shortages or surpluses can occur.
C) because they help eliminate poverty.
D) because they eliminate scarcity.
Answer: A
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List four types of tax-deferred saving vehicles. How could tax-deferred saving vehicles, if modified, transform the U.S. income tax into a consumption tax?
What will be an ideal response?
In the 1990s, the Danish government passed laws tightening eligibility requirements for receiving unemployment benefits. What happened in Denmark as a result of this policy change?
a. The size of the labor force declined b. The unemployment rate decreased c. More teenagers entered the labor force d. The wage rate increased e. The natural rate of unemployment increased
The table shows items and figures taken from a consolidated balance sheet of the 12 Federal Reserve Banks. All figures are in billions of dollars. In this balance sheet, the assets would be items 5 and
A. 4 and 6.
B. 2 and 3.
C. 1 and 2.
D. 3 and 4.
The immediate effect of a purchase of a government bond on the gross domestic product (GDP) is_____.?
a. a decrease in consumption b. an increase in government spending c. an increase in investment d. a decrease in investment e. nonexistent, since no real goods and services have been produced