Many public choice economists believe that elected political officials would make better choices if they had to vote for higher taxes in order to adopt new spending programs
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that the Fed purchases $1,000,000 worth of bonds and that the reserve ratio is 25 percent. Then, the maximum potential expansion of deposits is
A) $4,000,000. B) $400,000. C) $25,000,000. D) $10,000,000.
If a natural monopoly is broken up into many smaller firms then
A) the price will decrease. B) the average total costs of production will increase. C) efficiency will increase. D) None of the above because it is illegal to break up a natural monopoly into smaller firms.
The exchange rate is the
a. total yearly amount of money changed from one country's currency to another country's currency b. total monetary value of exports minus imports c. amount of a country's currency that can be exchanged for one ounce of gold d. sum of net unilateral transfers e. price of one country's currency in terms of another country's currency
Equilibrium in a market occurs when
A) demand and supply indicate a small surplus of a good. B) price is at its minimum. C) quantity supplied and quantity demanded are equal at the market clearing price. D) the market price leads to a decrease in quantity demanded.