Category: Economics

➤ How do right-wing totalitarian regimes suppress communist movements?
They use legal bans, arrests, and show trials to dissolve communist parties and leadership. Security forces and secret police implement surveillance, imprisonment, torture, and extrajudicial violence. Regimes control media and education to discredit leftist ideas, co-opt or crush labor unions, and employ economic incentives and repression to break grassroots organizing.

The greatest growth in the world’s population over the next several years will come fromMultiple ChoiceWestern Europe.Australia.Russia and nations of the former Soviet bloc.Eastern Europe.Africa.

The federal goverment’s policy of encouraging the breakup of tribes and the allotment of land to individuals was reversed in 1924 with the passage of the Indian Reorganization Act. true or false
Answer
True
False

➤ What is the discount window and why does the Federal Reserve operate it?
The discount window is a Federal Reserve facility that lends short-term funds to depository institutions to meet temporary liquidity needs. Its main purpose is to act as a lender of last resort, stabilize short-term funding markets, and prevent runs by supplying collateralized reserves when private funding is scarce.

➤ How do owner-supplied resources affect accounting and economic costs?
Owner-supplied resources often create implicit costs that accounting may not show. Accountants record explicit market purchases on the income statement and balance sheet, but owner-provided labor or capital appears as owner’s equity. Economists include opportunity cost of owner inputs when measuring economic profit, which gives a fuller picture of true business performance.

Question 25The Fed relies primarily on changes in the reserve requirement (the minimum amount of money banks must hold in reserve to cover deposits) to ease or tighten the money supply.TrueFalse