Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
a. The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living.
b. The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own.
c. Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient.
d. There will be no shortages under the first-come first-serve basis of allocation.
e. A random process of allocation is fair in the sense that everyone gains and there are no losers.
a
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An investor who desired the ability to have quick and easy access to cash would prefer to hold which type of asset?
A) risky B) liquid C) tax free D) any form of bond
According to Thomas Sargent and other new classical economists,
a. a credible policy to provide low stable money growth can exist with a fiscal policy that generates large deficits. b. a credible policy to provide low stable money growth cannot coexist with a fiscal policy that generates large deficits. c. there is no need for a credible, noninflationary monetary policy to control the government budgetary deficit. d. None of the above