In the area of business, rent-seeking often involves
a. the use of resources to construct high-priced rental housing.
b. the use of resources to secure and maintain a grant of monopoly power from the government.
c. an agreement between firms to raise prices and limit entry.
d. an agreement between a firm and a customer that makes both parties better off.
B
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If Techland's government reduces tax rates, ________
A) the economy's labor demand curve will shift to the left B) the economy's labor supply curve will shift to the left C) the economy's aggregate supply curve will shift to the left D) the economy's labor demand curve will shift to the right
To increase the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get more currency from the Treasury B) make each bank set its own reserve levels C) reduce the reserve requirement for banks D) increase the reserve requirement for banks
Monetarists have maintained the Classical tradition by emphasizing the
A) importance of government's fine-tuning policies. B) inflationary impact of government spending. C) instability of money demand. D) inherent stability of the economy.
The marginal propensity to consume (MPC) is calculated by which formula?
a. MPC = change in DI divided by change in C b. MPC = change in GDP divided by change in DI c. MPC = change in C divided by change in DI d. MPC = change in C divided by change in GDP