Many economists agree that this difference is due to all of the following reasons except:
A. Since the 1950s, the economy has become more service oriented and less dependent on the production of goods.
B. Since the 1950s, the federal government has stabilized the economy by using active fiscal and monetary policies
C. Since the 1950s, people have become more rational and control their spending behavior countercyclically.
D. Since the 1950s, the unemployment insurance program and other government transfer programs have aided the economy.
Answer: C. Since the 1950s, people have become more rational and control their spending behavior countercyclically.
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A country that is printing $100,000,000,000,000 bills probably has what problem?
a. too many rich and successful people b. inflation c. market failure d. fixed incomes
Terri is enrolled in her first economics course. She is required to give a presentation about the circular flow. Which of the following statements should she include in her presentation?
A) Households choose the amount of the factors of production to provide the firms. B) Firms choose the amount of the factors of production to provide households. C) Households receive wages for the amount of entrepreneurship they provide firms. D) Firms pay wages for the amount of entrepreneurship they provide households. E) The flows of goods and services and payments for the goods and services flow in the same direction.