In a capitalist market economy, recessions and inflation can occur because of coordination failures
a. True
b. False
Indicate whether the statement is true or false
True
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The analysis of economic outcomes before and after some economic variable is changed is referred to as:
A) cardinal research. B) comparative statics. C) Pareto analysis. D) marginal study.
As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?
i) The government's demand for loanable funds increased the real interest rate. ii) Investment expenditures were crowded out. iii) The supply of loanable funds curve shifted leftward. A) ii and iii B) i only C) ii only D) i and ii E) i, ii and iii
As the circular flow model points out, a choice that households make is how
A) many resources a firm will hire. B) many goods and services are produced. C) many goods and services are purchased. D) much labor is hired. E) much the government will collect in taxes and how much the government will spend on transfer payments.
Certifying a used car through a brand dealership is one way to
A. credibly screen out lemons. B. credibly signal the car is not a lemon. C. unreliably screen out lemons. D. unreliably signal that the car is not a lemon.