Governments exist to : (Multiple Choice)

Governments exist to
 
  A) maintain property rights.
  B) provide non-market mechanisms for allocating scarce resources.
  C) implement arrangements that redistribute wealth and income.
  D) all of the above.

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Ques. 2

An increase in the production of capital goods
 
  A) must increase the current production of consumer goods.
  B) must decrease the future production of consumer goods.
  C) shifts the production possibilities frontier inward in the future.
  D) shifts the production possibilities frontier outward in the future.

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Ques. 3

You are the new vice president in charge of advertising at Taco Bell. In your upcoming advertising campaign, you plan to degrade the fast food competitor whose product is the closest substitute for Taco Bell's tacos.
 
  That would be the fast food chain whose cross elasticity of demand with your tacos is equal to A) negative 2.11.
  B) negative 1.75.
  C) positive 1.55.
  D) positive 1.00.

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Ques. 4

Real income is equal to ________ and a relative price is given by ________.
 
  A) the dollar amount of income divided by the dollar price of a good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated
  B) the dollar price of one good divided by the dollar price of the good whose relative price is being calculated; the dollar amount of income divided by the dollar price of a good
  C) The dollar price of one good divided by the dollar price of another good; the dollar price of one good divided by the dollar price of the good whose relative price is being calculated
  D) the dollar amount of income; real income divided by the dollar amount of income

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Ques. 5

Coal is an example of
 
  A) a nonrenewable natural resource.
  B) a renewable natural resource.
  C) capital.
  D) a casual resource.

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Ques. 6

The data in the above table show that when the price level is 120, if aggregate demand does not change then the
 
  A) money wage rate will rise in the future.
  B) money wage rate will fall in the future.
  C) short-run aggregate supply curve will shift leftward.
  D) long-run aggregate supply curve will shift leftward.