Bureaucrats who believe in the mission of their bureaus will want to maximize their bureau's budgets to further their perception of the public interest
a. True b. False
a
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Answer the following statement(s) true (T) or false (F)
1. A market price contains no more information about a good than a good social planner would be able to obtain. 2. According to F.A. Hayek, knowledge is lost as statistics are used to convey information. 3. 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. 4. When allocation decision are not made on the basis of price traditional methods of social gain understate the actual gain to society.
When the Fed ________ the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) decreases; right; rises B) increases; right; falls C) decreases; left; falls D) increases; left; rises
Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be
A) counted as still being employed. B) included in the economy's "hidden employment." C) counted as frictionally unemployed. D) counted as cyclically unemployed.
Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. The real risk-free interest rate and GDP Price Index remain the same. c. The real risk-free interest rate falls, and GDP Price Index falls. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The real risk-free interest rate rises, and GDP Price Index falls.