Suppose the United States had a short-term shortage of farmers. Which mechanisms would adjust to remove the shortage?
a. The government would provide tax incentives to encourage people to become farmers.
b. The government would subsidize the production of food.
c. The prices of food and the wages of farmers would adjust.
d. There are no mechanisms to remove the shortage.
c
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The productivity slowdown of the 1970s occurred:
A. only in the U.S, the United Kingdom, and Japan. B. only in the U.S. C. only in the U.S. and the United Kingdom. D. around the world.
U.S. dollar bills
A) are backed by gold. B) are backed by silver. C) are backed by platinum. D) are backed by uranium. E) are not backed by any precious metal.
An example of a monopoly is
A) a big city restaurant. B) the stock market. C) the only veterinarian in an isolated farm community. D) a large hospital in a big city.
Fiscal policy refers to changes in
A) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to fund the war on terrorism. C) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. D) federal taxes and purchases that are intended to achieve macroeconomic policy objectives.