Today, the Federal Trade Commission (FTC) is concerned with:
a. enforcing consumer protection legislation.
b. prohibiting deceptive advertising.
c. preventing collusion.
d. all of these.
QUESTION 2The greater the number of different goods available in an economy, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop.
b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop.
c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop.
d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop.
e. more likely it is that individuals are producing only goods they want to consume.
QUESTION 3The production possibilities frontier of an economy is based on the assumption that the:
a. amount of consumer goods produced in the economy is constant during a given year.
b. quality of labor available in the economy is variable during a given year.
c. patent laws applicable in the economy are constant during a given year.
d. level of technology available in the economy is variable during a given year.
e. economy can either produce capital goods or consumer goods during a given year.
QUESTION 4The Federal Trade Commission Act was passed in:
a. 1890.
b. 1914.
c. 1929.
d. 1933.
QUESTION 5As the variety of goods and services increases, barter becomes:
a. easier because the chance of there being a double coincidence of wants increases.
b. harder because the chance of there being a double coincidence of wants increases.
c. easier because the chance of there being a double coincidence of wants decreases.
d. harder because the chance of there being a double coincidence of wants decreases.
e. easier because people have more options to choose from.
QUESTION 6Which of the following factors can influence the production possibilities frontier in the future?
a. The amount of capital produced
b. A fall in the rate of inflation
c. A decrease in consumption in an economy
d. An increase in the tax rate
e. A legal reform that increases transaction costs
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