The Friedman rule works because
A) it maximizes productivity.
B) it eliminates over-consumption.
C) it encourages people to hold the appropriate quantity of money.
D) it can be implemented by the private sector.
C
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A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by
A) purchasing government bonds from the public. B) selling government bonds to the public. C) selling newly issued government bonds directly to the central bank. D) buying newly issued government bonds directly from the central bank.
The optimal air quality would be determined where the marginal social cost of improving air quality is equal to the marginal social benefit from cleaner air
a. True b. False
Which of the following is true in a market economy?
a. Central planners determine answers to the basic economic questions. b. Resources are used efficiently. c. The distribution of wealth is equal. d. Information for production and distribution decisions pass directly to buyers from the government.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
a. The domestic price of automobiles would fall. b. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.