According to the text, the relationship between economic growth and the degree of how closed an economy is
A) positive.
B) negative.
C) constant.
D) unstable.
Ques. 2Specialization and the division of labor typically result in
A) cost overruns.
B) increased output.
C) decreased output.
D) a greater reliance upon imports.
Ques. 3Cost-of-service-regulation sets prices by considering
A) the actual variable cost of providing the service to the customer.
B) the actual total cost of providing the service to the customer.
C) the actual average cost of providing the service to the customer.
D) the actual marginal cost of providing the service to the customer.
Ques. 4Examples of transfer payments are
A) wages, profits, and rents.
B) Social Security checks and unemployment insurance payments.
C) salaries of educators, police, and firefighters.
D) federal government spending for national defense.
Ques. 5At its profit-maximizing output, the firm in the above figure incurs a total cost of production of
A) 7,000.
B) 9,000.
C) 6,300.
D) 3,900.
Ques. 6The adverse effects of rent controls include
A) keeping rental rates too high in a normal market.
B) excessive construction of new rental housing.
C) reduced incentive to construct new rental housing.
D) increased incentives for people to purchase their own homes.
Ques. 7An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product.
B) a decrease in quantity supplied of that product
C) a decrease in the supply of that product.
D) an increase in the supply of that product.
Ques. 8The indirect effect of an increase in the money supply is to
A) increase aggregate demand as people try to spend their excess money balances.
B) increase aggregate demand as interest rates fall and investment spending increases.
C) increase aggregate supply as firms anticipate future profits.
D) decrease the price level.
Quick Reply
