The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by
a. the price system.
b. the industries which produce the goods.
c. the central planners.
d. citizens with political power.
a
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The paper currencies of the U.S. are also called
A. U.S. government notes. B. Federal Reserve notes. C. Treasury bills. D. Treasury bonds.
Assuming gasoline and oil to be complementary goods, the effect on the oil market of an increase in the price of gasoline (other things being equal) would best be described as a(n):
a. increase in the demand for oil. b. decrease in the demand for oil. c. increase in the quantity of oil demanded. d. increase in the quantity of oil demanded.
QN=73 (17771) A transfer payment is
a. a payment for moving expenses a worker receives when he or she is transferred by an employer to a new location. b. a payment that is automatically transferred from your bank account to pay a bill or some other obligation. c. a form of government spending that is not made in exchange for a currently produced good or service. d. the benefit that a person receives from an expenditure by government minus the taxes that were collected by government to fund that expenditure.
Ignoring risk differences, if we observe American investors purchasing foreign bonds when the U.S. interest rate is above the foreign interest rate, we could assume that:
A. these investors expect the dollar to appreciate over the life of their investment. B. American investors lack good information. C. these investors expect that U.S. inflation will slow. D. these investors expect the dollar to depreciate over the life of their investment.