Which of the following is a reason that the Fed does not traditionally attempt to limit asset price bubbles?
A. The Fed’s actions could do more harm than good.
B. It is nearly impossible to determine if a bubble exists before it bursts.
C. The Fed’s policies cannot be targeted at only one sector of the economy.
D. All of these responses are correct.
Answer: D
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The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve is downward sloping and the supply curve is upward sloping. B) demand curve for halogen bulbs is horizontal. C) demand curve for halogen bulbs is vertical. D) supply curve of halogen bulbs is horizontal.
If a fair coin is tossed, the probability of coming up with either a head or a tail is:
A. 1/2 or 50 percent. B. Unquantifiable. C. Zero. D. 1 or 100 percent.
Which of the followingbestdescribes the economic concept of utility?
A. Utility is the total number of units a consumer buys. B. Utility measures the usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility. C. Utility measures the satisfaction, or pleasure, that people receive from consuming a good or service. D. Utility and price are interchangeable values.
When was the last year that GDP per capita in North Korea was approximately equal to GDP per capita in South Korea?
A) 1950 B) 1970 C) 1990 D) 2000 E) none of the above