In the Monetarist model,
a. monetary policy and not fiscal policy is the prime factor in aggregate demand movements.
b. money demand is more volatile than in the Keynesian model.
c. expectations are correct on average.
d. aggregate supply is not the primary source of business cycles.
e. both a and b.
A
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In order to societies to reap the gains from trade, it is necessary to
A) define and enforce property rights. B) foster economic growth. C) distribute resources equally. D) achieve productive efficiency.
A Midwestern wheat farmer faces a horizontal demand curve because
a. it is so large relative to the market as a whole that it has no impact on market price b. it is so small relative to the market as a whole that it has no impact on market price c. it produces a good for which there are no substitutes d. it produces a good for which there are no complements e. it produces a good that no other firm in the industry produces
Exhibit 6-5 Marginal utility data for desserts Quantity Brownies Ice Cream Pie 1 20 18 16 2 18 17 13 3 15 14 9 4 12 11 7 5 10 8 5 Refer to Exhibit 6-5. Each dessert is priced at $1. If you had $10 to spend on desserts, which of the following combinations of goods would you buy?
A. 5 units of brownies, 4 units of ice cream, and 1 unit of pie. B. 4 units of brownies, 5 units of ice cream, and 1 unit of pie. C. 4 units of brownies, 4 units of ice cream, and 2 units of pie. D. 4 units of brownies, 3 units of ice cream, and 3 units of pie.
A tax that exacts a lower proportion of income from higher-income people than it does from lower-income households is a regressive tax.
Answer the following statement true (T) or false (F)