Regarding government intervention in the economy, which of the following statements is not true?
A. Liberals tend to favor intervention.
B. Conservatives are inclined to adhere to fixed rules.
C. There is no guarantee that government intervention will have the desired effect.
D. The effect of government actions on interest rates and spending is unknown.
E. All of these responses are correct.
Answer: A
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The principal reason why the chain-weighted index for GDP and the CPI both overstate actual changes in prices is that
A) the basket of goods purchased by consumers never changes. B) price data is often inaccurate. C) it is hard to measure quality changes. D) all of the above
Suppose a drought resulted in a major reduction in the California lettuce crop. In the market for lettuce,
A) the demand curve shifted to the right resulting in an increase in the equilibrium price. B) the supply curve shifted to the left resulting in a decrease in the equilibrium price. C) the supply curve shifted to the left resulting in an increase in the equilibrium price. D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
How did the international monetary system created at Bretton Woods in 1944 allow its members to reconcile their external commitments with their internal goals of full employment and price stability?
What will be an ideal response?
Because individuals can move from one government jurisdiction to another, _____
a. governments tend to cooperate with one another b. governments tend to look alike c. governments tend to merge into larger governments d. governments tend to give constituents what they want