The tools of monetary policy:
A. are limited in number and never change.
B. continue to evolve as the economy changes.
C. are all equally effective since they all do basically the same thing.
D. have been used in the same basic ways for a hundred years.
Ans: B. continue to evolve as the economy changes.
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The figure above shows the U.S. demand and U.S. supply curves for cherries. In the absence of international trade, how many pounds of cherries would U.S. farmers produce?
A) 200,000 pounds B) 400,000 pounds C) 600,000 pounds D) 800,000 pounds E) 0 pounds
Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________, and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; does not change
From a consumer's viewpoint, which of the following policies would be least desirable?
A. Quotas on imported goods. B. Tariffs on imported goods. C. No trade. D. Free trade.
Which of the following is a characteristic of a market economy?
A. Government ownership of the means of production B. Private property C. Distribution according to need D. Tradition determines the what, how, and for whom decisions