Which of the statements best describes the difference between economic regulation and social regulation?
A) There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy.
B) Economic regulation focuses on output and price; social regulation focuses on improving the quality of life.
C) Social regulation focuses on output and price; economic regulation focuses on quality of life issues.
D) Social regulation targets industries like transportation, while economic regulation targets utilities.
Ques. 2Normative economic analysis involves
A) true statements of facts only.
B) testable hypotheses by scientists.
C) value judgments and opinions.
D) purely descriptive statements.
Ques. 3According to the law of supply
A) people buy more of a good when the price increases.
B) people buy less of a good when the price decreases.
C) producers provide more of a good when the price decreases.
D) producers provide less of a good when the price decreases.
Ques. 4In the above figure, the production of 75 ukuleles and 75 guitars is
A) efficient production.
B) inefficient production.
C) impossible production.
D) full employment production.
Ques. 5Seasonal unemployment is
A) due to the fact that workers must search for appropriate job offers.
B) a result of a poor match of worker's abilities and skills with current requirements of employers.
C) a result of business recessions that occur when aggregate demand is insufficient to create full employment.
D) a result of the seasonal pattern of work in specific industries.
Ques. 6Price controls often generate
A) more efficient markets.
B) black markets.
C) rapid adjustment to market-clearing prices.
D) greater price flexibility.
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