A social system in which rights are clearly defined and participants are free to exchange as they choose will tend to allocate resources to
A) their most efficient uses.
B) their most highly valued uses.
C) uses on which the highest monetary value is placed.
D) uses which maximize social welfare.
E) uses which produce the greatest good for the greatest member.
C
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When there are credit-market imperfections, an increase in government debt may be advantageous because it
A) discourages credit-constrained consumers from borrowing too much. B) allows credit-constrained consumers to consume more. C) eliminates the problems that cause credit-market imperfections. D) encourages more private saving.
The practice of lending very small amounts of money, without collateral, and accepting small savings deposits is known as
A. capital flight. B. microfinance. C. a stabilization program. D. debt rescheduling.
If inflation does not adjust rapidly in the short run, then when the Federal Reserve decreases the nominal interest rate, the real interest rate in the short run will ________.
A. be determined by saving and investment decisions. B. decrease C. increase D. not change
Which of the following effects will not increase (i.e., shift to the right) the aggregate supply curve?
a. An increase in the average national price level. b. A decrease in the price of fuel. c. An appreciation of the domestic currency. d. All of these answers are correct. e. None of these answers is correct.