Before specialization: (Multiple Choice)

Before specialization:
 a. families were largely self-sufficient.
 b. families produced much more than they could each consume.
  c. there was a great need for exchange between families.
 d. families consumed much more than they could each produce.
  e. families exchanged only goods, not services.

QUESTION 2

The real interest rate can be negative.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

Under the Clayton Act,
 a. the same person cannot sit on the boards of directors of competing corporations.
  b. mergers are illegal.
  c. monopoly is illegal.
  d. the Sherman Antitrust Act was repealed.

QUESTION 4

Specialization of labor means that:
 a. production requires a special kind of labor.
 b. the overall skill level of labor is increasing over time.
 c. individuals produce goods that they are relatively good at producing and trade for those that they do not produce.
  d. individuals achieve self-sufficiency in production by producing all the goods that they require.
 e. exchange within the economy consists of trading in services.

QUESTION 5

The nominal interest rate is determined in the market for loanable funds.
 a. True
  b. False
  Indicate whether the statement is true or false