In a world of scarcity, there has to be some way to ration the available resources. According to economists, the most efficient use of available resources occurs when rationing occurs via
A) queuing.
B) lotteries.
C) political power.
D) the price system.
D
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In the interest-rate-based transmission mechanism, a decrease in the money supply will
A) reduce investment, shift the aggregate demand function inward, and lower real Gross Domestic Product (GDP). B) reduce the rate of interest and the level of investment. C) increase the price level. D) shift the aggregate supply function inward and increase real Gross Domestic Product (GDP).
If the tax system is made more progressive, the after-tax wages of high-income workers would _____
a. fall b. rise c. stay constant d. rise or fall depending upon job market conditions
Which of the following would be likely to shift a nation's production possibilities curve outward?
a. a decrease in the production of capital goods b. an increase in the production of consumer goods c. an increase in the number of retired workers d. none of the above
The most a bank could lend at any time without altering its assets is an amount equal to its:
A. checkable deposits. B. excess reserves. C. reserves. D. net worth.