The mechanism that normally coordinates what goes on in an economy is the:
A. government.
B. price system.
C. stock market.
D. Federal Reserve.
Answer: B
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Since 1900, real GDP per capita in the United States has ________ in the short run and has ________ in the long run
A) fluctuated; displayed a strong upward trend B) remained fairly stagnant; grown considerably C) decreased more often than it has increased; increased more often than it has decreased D) grown at a stable and consistent rate; wildly fluctuated
An increase in first-period income results in
A) an increase in first-period consumption, an increase in second-period consumption, and an increase in saving. B) an increase in first-period consumption, a decrease in second-period consumption, and an increase in saving. C) a decrease in first-period consumption, an increase in second-period consumption, and an increase in saving. D) an increase in first-period consumption, an increase in second-period consumption, and a decrease in saving.
The production possibilities curves illustrated in Figure 35.2 reveal that
A. The United States has no comparative advantage. B. The United States has an absolute advantage in both goods. C. Mexico has a comparative advantage in baseballs. D. Mexico has no comparative advantage.
Sound finance holds that government spending should be directed toward sound investment.
Answer the following statement true (T) or false (F)