Which of the following functions is not performed by prices in a free market?
A. Guiding the allocation of resources
B. Conveying information about the marginal cost of production
C. Making the distribution of income more equitable
D. Replacing the need for governmental supervision of production
Answer: C
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Liabilities of the commercial banking system include
A. reserves and loans. B. reserves and deposits. C. loans and deposits. D. deposits.
How do imports affect buyers' consumer surplus?
What will be an ideal response?
Under which of the following conditions will a change in government purchases have the greatest effect on the economy in the short run?
a. The aggregate demand curve is relatively flat. b. The aggregate demand curve is relatively steep. c. The short-run aggregate supply curve is relatively flat. d. The aggregate demand curve is vertical. e. The short-run aggregate supply curve is vertical.
Economist Steven Levitt argues the Supreme Court decision ________ had an impact on reducing crime during the 1990s because it is associated with "wantedness."
A. on gay marriage B. on school bussing C. on abortion D. on prayer in schools