Which of the Following Scenarios Can Be Classified as Passive

question 180

Multiple Choice

Which of the following scenarios can be classified as passive policymaking?

• A) The Federal Reserve cuts the federal funds rate in order to increase economic activity.
• B) The federal government increases spending in order to create jobs.
• C) The Federal Reserve adjusts the money supply as appropriate to attain a target rate of inflation.
• D) Congress increases expenditures in an effort to stimulate economic activity.

Recognize the importance and method of government regulation in preventing collusion among firms and protecting market competition.

Explain the concept of opportunity cost and how it affects decisions related to household production and hiring professionals.

Understand the characteristics that define a public good and how they differ from private goods.

Grasp the significance of government roles in promoting competition, ensuring economic stability, and safeguarding private property.

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Definitions:

Market Price

The ongoing price point for transactions involving assets or services in the open market.

Costs Of Production

Expenses incurred during the process of creating a product or service, including raw materials, labor, and overhead costs.

Firm

A business organization, such as a corporation or partnership, which sells goods or services in exchange for money.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, usually a measure of profit.