The contributive standard (merit standard) for distributing income implies that
A. income should be distributed according to the marginal productivity of workers.
B. income should be distributed according to need.
C. a transfer should be contributed to an individual above his or her contribution to net output.
D. income should be distributed equally.
Answer: A
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Some people support the Euro in hopes that the European Central Bank will emulate the monetary policy of the central bank of
A) Germany. B) France. C) Italy. D) Spain.
What is the most prominent rationing device you will likely find at your campus bookstore?
A) dollar price B) brute force C) anti-theft tags on the high-priced items D) none of the above
Answer the following statements true (T) or false (F)
1. In the United States, all money is essentially the debt of the Fed, commercial banks, and thrift institutions. 2. The currency held in the vaults of commercial banks is included in the money supply M1. 3. Debit card balances are part of money supply M1, but credit card balances are not. 4. Using a debit card is like writing a check; the amount will be deducted from one's checking account. 5. The value (or purchasing power) of money increases when the price level increases.
Which of the following is likely to happen if the quantity of bank reserves held at the Fed increases?
A) The stock of money in the economy increases. B) The number of loans issued by banks decrease. C) Bank deposits decrease. D) The real interest rate increases.