Which of the following is true of an annually balanced federal budget?
a. Most economists agree that the federal government should balance its budget just as each household does.
b. Such a policy would require the government to increase its spending when tax receipts decrease
c. Such a policy became popular between the 1930s and 1960s.
d. Such a policy guarantees that the economy is its potential level.
e. Such a policy could worsen a contractionary gap.
e
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Which of the following is not a barrier to entry that is created by government?
A) Economies of scale. B) Licenses. C) Regulatory restrictions. D) Patents.
A basic factor of production that is used to produce output is:
A. technology. B. labor. C. capital. D. All of these are considered factor inputs.
If the Fed wanted to use all four of its major monetary control tools to decrease the money supply, it would
a. buy bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves. b. sell bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves. c. sell bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves. d. buy bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
The Bureau of Labor Statistics surveys consumers to determine a fixed basket of goods
a. True b. False Indicate whether the statement is true or false