A legal system that protects private property and enforces contracts in an even-handed manner helps promote economic growth because it
a. makes it possible for individuals to generate large incomes and get ahead without cooperating with others.
b. provides people with a strong incentive to supply others with things that they value at an economical price.
c. encourages people to use resources now rather than conserving them for the future.
d. keeps the real wages of workers low and thereby makes it possible for business firms to supply goods and services economically.
B
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Possible barriers to entry of new firms into an industry
a. include patents and controls over raw materials. b. enable monopolists to enjoy long-run profits. c. may consist of substantial economies of scale. d. All of these.
Microeconomics can be used by governments to predict the impacts of a policy and suggest solutions to problems
What will be an ideal response?
Under the Bretton Woods agreement, the officially determined value of a country's currency is referred to as its
A) GDP. B) par value. C) exchange rate. D) value-to-weight ratio.
YearCPI200594200699200710020081042009117Using the information in the table shown, the rate of inflation from 2005 to 2006 was:
A. 5.32 %. B. 5.05 %. C. 6.00 %. D. 5.00 %.