Many persons object to the results of the competitive market system because
a. it takes too much energy to coordinate activities.
b. efficient outcomes may not be compatible with their ideas of a fair distribution.
c. a few people can control all economic activity.
d. it fosters high rents and low beef prices.
b
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A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base
A) purchase; higher; increases B) purchase; lower; decreases C) sale; lower; decreases D) sale; higher; increases
Markets can be missing:
A. because public policy prevents the market from existing. B. when the production of a particular good is banned. C. because of a lack of accurate information between potential buyers and sellers. D. All of these are true.
"It doesn't hurt to get more information . . ." is good advice
a. especially when the opportunity cost of acquiring the information is high b. when information is less than perfect c. only if the marginal benefit of information is greater than the marginal cost of information d. only if the marginal benefit of information is equal to the marginal cost of information e. only if the marginal benefit of information is less than the marginal cost of information
When analyzing the impact of government consumption and taxes in an open economy, we exclude transfer payments because:
a. they are not paid for by taxes. b. in the aggregate, they do not generate a change in total spending on goods and services. c. the sums are so large as to be incalculable. d. the sums are so small as to be insignificant.