Which of the following scenarios can be classified as passive policy making?
A) The Federal Reserve cuts the federal funds rate in order to increase economic activity.
B) The federal government increases spending in order to create jobs.
C) The Federal Reserve adjusts the money supply as appropriate to attain a target rate of inflation.
D) Congress increases expenditures in an effort to stimulate economic activity.
Answer: C) The Federal Reserve adjusts the money supply as appropriate to attain a target rate of inflation.
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When Social Security checks were first issued the nominal amount:
A. regularly increased by 5 % every 3 months. B. regularly increased by 10 % every 3 years. C. stayed 3% above the poverty level for all recipients. D. stayed the same for the life of the payments.
What is the relationship between the Sherman Antitrust Act and the Clayton Act?
A. The Clayton Act strengthened the Sherman Antitrust Act by limiting some very specific business practices. B. The Sherman Antitrust Act encouraged competition among firms in the U.S. while the Clayton Act encouraged competition among foreign firms. C. The Clayton Act was the first act passed and the Sherman Antitrust Act was the second. D. Both Acts deal with issues of setting price and quantity for regulated industries.
The income earned by the people who sell the services of the factor of production ________ is called ________
A) capital; rent B) entrepreneurship; wages C) land; profit D) entrepreneurship; profit
If a firm acquires the stock of a competing firm that causes a substantial lessening of competition, it would be in violation of the:
a. Clayton Act. b. Robinson-Patman Act. c. Sherman Antitrust Act. d. Federal Trade Commission Act. e. Interstate Commerce Act.