In a growing economy, __________ enjoy a rising standard of living.

A. only the rich
B. both rich and poor
C. neither the rich nor the poor
D. only the poor


Answer: B

Economics

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The key to reaching a Pareto optimum through mutually beneficial exchange _____

a. is to remove barriers to international trade b. is to establish property rights for valuable resources c. is to provide start-up capital to fledgling entrepreneurs d. is to encourage people to use online auction services

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The potential for a financial breakdown at large institutions to spread throughout the financial system is called

A) a systemic risk. B) a too-large-to-fail problem. C) an averse selection problem. D) a moral hazard.

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If the government wishes to increase GDP by $1,200b, and the MPC is 0.8, it should:

A. increase its spending by $240b. B. decrease its spending by $240b. C. increase its spending by $960b. D. decrease its spending by $960b.

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In agriculture, where firms producing similar goods are often located near each other, supervision of neighboring firm activity is fairly easy. When these firms come together formally to agree on price and restraint of output, their organization is called a(n)

a. collusive venture b. cartel c. cooperative d. agricultural merger e. conglomerate

Economics