One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money.
B. by increasing government spending.
C. by setting price ceilings on most goods so people can afford them.
D. None of these will help an economy in recession.
Answer: B
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When drawing a production possibilities frontier, which of the following is held constant?
A) the amount of money in the economy B) the available factors of production and the state of technology C) the prices of goods and services D) the quantity of the goods and services that are produced E) None of the above because nothing is held constant when drawing the production possibilities frontier.
Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
If a commercial dairy farm wants to raise funds to purchase feeding troughs, it does so in the
A) product market. B) dairy products market. C) factor market. D) output market.
If the infant industry argument is used to protect an industry that has already matured, then
A) consumers lose because they will pay a price for a product that is above the world price. B) consumers lose because they will pay a price for a product, which is less than the world price. C) stockholders lose because the firm cannot compete with other firms. D) no one loses.