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Economics

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Dell Herzog

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2y ago
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Cards in this guide (11)
What is the purpose of a free-market system

To allow consumers and producers to make their own decisions

How does the assembly line benefit the economy

helped meet supply and demeand faster It increases productivity

When does Country X have an absolute advantage over Country Y in the production of corn

Country X can grow corn more cheaply than Country Y.

Consumers use cost-benefit analysis in order to maximize what

Consumers use cost-benefit analysis in order to maximize utility.

Economic decisions involve doing what with resources to produce goods and services for people to consume

Allocating

Which is not a policy tool used by the Fed

Making tax cuts

The government sets a price floor in order to protect what

A vulnerable industry

What is the purpose of the required reserve ratio

. To make sure banks have enough money on hand to meet customers' withdrawal requests

This is incorrect. Fractional Reserve Banking is the Instrument by which Banks lend money against your signature and only need 10% of the funds on hand to do so. They create 90% of the funds out of thin air. It is virtually legalized counterfeiting. Then they have the nerve to charge you interest on this money they created from nothing. Anybody who accepts this as a good idea is insane. If you don't believe me there are many you tube videos on the subject. An excellent place to start is "The Four Horsemen" featuring testimony from people such as the ex chief economist from the World Bank.

Which of these is most likely to lead to a decrease in the price of a good

Demand decreases and supply remains the same would lead to a decrease in the price of a good.

What is a not a way the fed can generate an increase in the money supply

Cutting taxes

Which of the following promotes greater efficiency and lower prices by protecting competition

antitrust laws -apex :)

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