The basic coordinating mechanism in a free-market system is
A. quantity.
B. a central government authority.
C. price.
D. the corporation.
Answer: C
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If the Fed wants to lower the federal funds rate through open market operations, it ________
A) decreases tax rates B) increases tax rates C) sells bonds D) buys bonds
Refer to Figure 4.1. A Nash equilibrium can be found at
A) (Up; Top; Left) B) (Up; Top; Right) C) (Down; Bottom; Right) D) There is no Nash equilibrium.
According to the Principle of Increasing Opportunity Cost, in expanding the production of any good, we should start by utilizing the resources that:
A. have the highest opportunity cost. B. have the lowest opportunity cost. C. we have the most of. D. we have the least of.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.