Is sharecropping economically efficient or inefficient? Explain
What will be an ideal response?
See the section in the text.
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Which of the following is a discretionary fiscal policy action?
A) a progressive tax system that leads to an increase in income tax revenues during an economic boom B) a deliberate tax cut when the economy experiences high unemployment C) an increase in the amount of unemployment compensation because more people become unemployed D) an increase in Supplemental Security Income payments when more people become eligible for the benefits
The difference between economies of scale and diseconomies of scale is that economies of scale ______, whereas diseconomies of scale ______.
a. are cost advantages experienced by large companies; are the benefits of remaining a small business b. give the company an advantage over smaller competitors; are problems that come with growth c. are advantages that affect a firm’s production in the short run; are experienced over the long run d. are profits realized when the market price of outputs rises; are losses suffered when prices decline
For the Fed to use money growth as a direct monetary policy target, which of the following needs to exist?
A. A stable link between the monetary base and the quantity of money B. A highly variable deposit expansion multiplier C. A predictable link between the quantity of money and the deposit expansion multiplier D. A stable link between the monetary base and the quantity of money and a predictable relationship between the quantity of money and the rate of inflation
Those that believe that the recent period of slow growth will pass and that higher levels of growth can be created through conservative policies focus on ones that would cause
A. decreases in aggregate supply. B. increases to aggregate supply. C. increases to aggregate demand. D. decreases in interest rates.