Each firm in a perfectly competitive industry is
A. relatively large.
B. a price maker.
C. a price taker.
D. producing a unique product.
Answer: C
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Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A) discretionary fiscal policy. B) interest-rate policy. C) monetary policy. D) exchange-rate policy.
Unused lines of credit on credit cards are part of M2
a. True b. False Indicate whether the statement is true or false
Big-push economists argue that an interlocking, balanced set of infrastructure and development investments can only be initiated, financed, and managed by
a. government b. private sector entrepreneurs c. foreign multinationals d. the World Bank e. the International Monetary Fund
For a privately owned business in a competitive market setting,
a. reducing resource use while producing the same output adds to profit and typically reduces waste products and thus cuts pollution as well. b. when property rights are well-defined and strictly enforced, the firm will be able to pollute air and water without having to bear the cost of the damages imposed on others. c. wasteful use of resources results in more pollution but greater profit. d. reducing pollution almost never pays.