The most likely advocates for a monetary rule would be:
A. Monetarists
B. Real-business-cycle theorists
C. Mainstream economists
D. Supply-side economists
A. Monetarists
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When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,
a. consumers have a strong incentive to search out those firms offering them the best deal. b. private producers of such goods will have little incentive to control costs and provide them at low prices. c. goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs. d. the invisible hand will direct consumers and producers toward an efficient level of output.
Which of the following is a public assistance or welfare program as opposed to a social insurance program?
A. Supplemental Security Income (SSI). B. Unemployment compensation. C. Medicare. D. Social Security.
The change in people's purchasing power that occurs when the price of one good that they purchase changes is the
A. law of diminishing marginal utility. B. substitution effect. C. price income effect. D. real-income effect.
There are two restaurants that serve equally good Mexican food in a small college town. One of them charges an average of $7 per plate, and usually you have to wait an hour to be seated. The other restaurant charges an average of $9 per plate, and you can usually be seated right away. How does the cost of consumption compare across these two restaurants?
a. For people with a very high opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they are willing to accept a higher money price in return for a lower time price. b. For people with a low opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they do not have to pay a high time price. c. For people with a very high opportunity cost of time compared to others, the restaurant with the lower money price makes more sense because they are relatively more willing to pay a high time price. d. The restaurant with the lower money price makes more sense to both high opportunity cost of time and low opportunity cost of time consumers.