Refer to the above figure. Which panel is consistent with the Fed selling bonds?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
Ques. 2In a barter system, we would expect to see
A) many different units of money.
B) money and goods exchanged for each other.
C) wide-spread financial institutions.
D) goods traded directly for other goods and services.
Ques. 3Keynes argued that because of sticky prices and wages
A) the short-run aggregate supply curve could be horizontal.
B) the short-run aggregate supply curve is probably vertical.
C) the long-run aggregate supply curve slopes downward.
D) the aggregate demand curve is vertical.
Ques. 4Proponents of the new growth theory argue that which of the following is a determinant of economic growth?
A) An effective system of patent protection
B) The quality and size of the nation's educational system
C) The proportion of income that goes into research and development
D) All of the above
Ques. 5The headline in the local paper today is College tuition next fall rise by 6 percent. This statement is an example of
A) a normative statement.
B) a positive statement.
C) an invalid statement.
D) ceteris paribus.
Ques. 6Which of the following would be considered an economic function of government?
A) providing a legal system
B) promoting competition
C) providing public goods
D) All of the above are correct.
Ques. 7Regulators usually encourage natural monopolists to engage in
A) marginal cost pricing.
B) average cost pricing.
C) marginal cost pricing, with subsidies from the government offsetting the losses.
D) inefficient pricing.
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