Figure 3.5 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from:
A. point a to point b.
B. point c to point b.
C. S2 to S1.
D. S0 to S1.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. Distributing goods equally among consumers would be not only fair but efficient. 2. A market price contains no more information about a good than a good social planner would be able to obtain. 3. According to F.A. Hayek, knowledge is lost as statistics are used to convey information. 4. Whether a good is distributed by a social planner or a market system, the area beneath the demand curve out to the quantity available accurately measures the value consumers receive. 5. When allocation decision are not made on the basis of price traditional methods of social gain understate the actual gain to society.
Beginning in December 2007, the Fed began cutting the federal funds rate from 4.25% to less than 1%. During this time, it was engaged in ________ monetary policy in order to reduce the threat of a ________ in the US economy
A) expansionary; stagflation B) contractionary; stagflation C) expansionary; recession D) contractionary; recession
Many communities have granted monopoly rights to cable companies. This is an example of a monopoly created through: a. government licensing
b. ownership of the cable resources. c. patent protection. d. smart business practices by shrewd entrepreneurs.
The dollar amount of reserves a bank is obligated by regulation to hold as cash in the bank's vault or on account at the Fed is called the excess reserves
Indicate whether the statement is true or false