Which of the following statements would Milton Friedman disagree with?
A. In practice, there is little scope for using monetary policy actively to smooth out business cycles.
B. In the long run, changes in the money supply primarily affect the price level.
C. Monetary policy has few short-run effects on the real economy.
D. The Federal Reserve cannot be relied on to effectively smooth out business cycles.
Answer: C
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What occurs when it is impossible to improve the situation of one party without imposing a cost on another?
a. efficiency b. consumer surplus c. social surplus d. deadweight loss
It is said by some that the United States has the greatest healthcare system in the world, but infant mortality rates are higher than those in _______ percent of other industrial countries.
Fill in the blank(s) with the appropriate word(s).
Each of these is a craft union except
A. the plumbers' union. B. the textile workers' union. C. the musicians' union. D. the air traffic controllers' union.
Suppose Spencer and Kate are the only two demanders of lemonade. Each month, Spencer buys six glasses of lemonade when the price is $1.00 per glass, and he buys four glasses when the price is $1.50 per glass. Each month, Kate buys four glasses of lemonade when the price is $1.00 per glass, and she buys two glasses when the price is $1.50 per glass. Which of the following points is on the market demand curve?
a. (quantity demanded = 4, price = $2.50)
b. (quantity demanded = 16, price = $2.50)
c. (quantity demanded = 3, price = $1.50)
d. (quantity demanded = 10, price = $1.00)