Government can use its funds to purchase goods or transfer money to people.
a. true
b. false
Ans: a. true
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The more elastic the demand curve, a monopoly
A) will have a larger Lerner Index. B) will face a lower marginal cost. C) will earn more profit. D) will lose more sales as it raises its price.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. We can say:
A. Country B now possesses the absolute advantage in the production of both goods. B. Country B now possesses the absolute advantage in tablets only. C. Country B now has the comparative advantage in iPod production. D. Country B has no need to trade now.
Reserves that the Fed injects into the banking system are ultimately
a. converted into loans that banks make to other banks b. distributed among different banks in the system as required reserves c. end up in just two or three banks d. ineffective at increasing money supply e. important to banks that want more customers
Private goods are always provided by the private sector.
A. True B. False C. Uncertain