The market and public sector are similar in that
A. there is competition among the participants in both sectors.
B. the participants in both sectors react to incentives.
C. the resources used in both sectors are scarce.
D. All of these are true.
Answer: D
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If the Fed chose to change its policy actions implemented during the heart of the recession faster than the timing suggested by the White House, this would be an indication of the Fed's
A) independence. B) frictional relationship with the White House. C) changing its monetary policy target. D) lack of credibility.
People who focus on the "competitiveness" of the United States are
A) focusing on the right thing if the United States is to stay a leading economic power. B) treating the United States as if it is a business firm. C) also focusing on the importance of education. D) correctly recognizing that trade is a zero-sum game.
If the interest rate fell to zero, would that necessarily stimulate the economy?
What will be an ideal response?
Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the
a. marginal rate of substitution. b. rate at which the consumer will give up X to gain Y while maintaining the same level of utility. c. relative price of the two goods. d. All of the above are correct.