Scarcity implies that some way of rationing goods must be found. Explain what this statement means. How is this rationing done?
What will be an ideal response?
Ques. 2Static tax analysis assumes
A) all of the present tax rates will be in place for a minimum of twenty years.
B) changes in the tax rates have no effect on the tax base.
C) changes in the tax rates have no effect on tax revenue.
D) changes in the tax rates will change the tax base.
Ques. 3Which of the following is NOT an economic function of government?
A) providing a legal system
B) ensuring economic stability
C) providing government-inhibited goods
D) promoting competition
Ques. 4Assumptions are necessary to
A) make economics a social science.
B) define a set of circumstances where a model is most likely to apply.
C) define the relationship between wants and resources under all circumstances.
D) define the specific cause and effect relationship that is being explained by social sciences.
Ques. 5Which of the following groups would NOT be considered as part of the civilian labor force?
A) full-time students who are not working or looking for work
B) those already employed
C) those who are unemployed
D) all individuals only working part-time
Ques. 6Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4?
A) 5.8 percent
B) 7.8 percent
C) 3.6 percent
D) 2.0 percent
Ques. 7What is the real GDP after four years if Country X's average annual growth rate is 8.6 percent and the initial real GDP was 2,756.0 million?
A) 2,993.0 million
B) 3,833.5 million
C) 1,077.5 million
D) 3,250.4 million
Ques. 8Mary decreases her consumption of Good X after the price of Good Y decreased. For Mary
A) Good X and Good Y are substitutes.
B) Good X and Good Y are complements.
C) Good X is an inferior good.
D) Good Y is an inferior good.
Ques. 9Which rationing system leads to the most efficient use of available resources?
A) free market
B) physical force
C) first come, first served
D) random assignment
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