During times of economic boom, the spending on unemployment insurance:
A. likely falls, since more people are working.
B. likely goes up, since wages typically rise during booms.
C. likely stays the same, as government spending is through set criteria and unaffected by the business cycle.
D. is usually based on discretionary fiscal policy.
A. likely falls, since more people are working.
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Which of the following explains why mortgages weren't considered securities prior to 1970?
A) The Federal Reserve Act of 1913 prohibited mortgages from being considered securities. An amendment to the Act was approved in 1970 that allowed mortgages to be considered securities. B) Prior to 1970, mortgages were rarely resold in the secondary market. C) Until 1970, the average annual increase in housing prices did not allow the buying and selling of mortgages to be profitable. There has been a significant annual increase in housing prices and mortgage values since 1970. D) Congress passed a law in 1970 stipulating that mortgages could be classified as securities.
The equation specifying a direct relationship between the money supply and prices is the quantity theory of:
a. money. b. prices. c. exchange. d. spending. e. dollars.
Historical evidence suggests that monopolization of particular industries had led to lower prices. In such cases the monopolists had reduced profit to increase welfare
Indicate whether the statement is true or false
Do all valuable items have price tags?
a. No, because some valuable items have no opportunity cost. b. Yes, because everything has its price. c. Yes, because price is the measure of opportunity cost. d. No, some have no explicit price on them. e. Yes, because only items that can be sold in markets have value.