Organ sales are illegal in the United States. This creates possible economic inefficiency because:
a. It discourages wealth creating transactions through the threat of legal penalty
b. It encourages organ sales
c. It encourages government intervention
Answer: a. It discourages wealth-creating transactions through the threat of legal penalty
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Christine works as a receptionist in an office. She is not supposed to use the Wi-Fi connection provided by the company to access social-networking Web sites
However, she often uses the Wi-Fi to access these Web sites because her browsing activities are not monitored by her employer. This is an example of ________. A) adverse selection B) moral hazard C) a positive externality D) a free-rider problem
The four phases of the business cycle are, in order: peak, downturn, trough, upturn.
Answer the following statement true (T) or false (F)
Refer to the above data. Real GDP in year 4 was approximately:
$3,494 billion $3,989 billion $3,562 billion $3,774 billion
Entrepreneurship functions better when
A. a system of private property rights permits entrepreneurs to capture the rewards from their entrepreneurial activities. B. patent laws are not strongly enforced since they make imitation difficult. C. government provides technical support to entrepreneurs. D. universities provide research that is closely interrelated with the entrepreneurial activities.