Government purchases of goods and services
a. consist of current output of goods and services purchased by the federal government only. b. includes the current output of goods and services bought by the federal, state, and local governments.
c. are the largest component of gross national product.
d. include both defense spending and spending on social security.
A
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In the context of the environment, the type of transactions costs that includes covering all the costs associated with the bargaining process, such as fees for attorneys, negotiators, and accountants, are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
Refer to Figure 14.1. Other things equal, which of the following will cause a movement from point Y to point X?
A) an increase in the real interest rate B) a decrease in disposable income C) a decrease in expected profits for firms D) an increase in net exports
Market systems can be evaluated as efficient or inefficient, but not as fair or unfair.
Answer the following statement true (T) or false (F)
The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. Which of the following contributes to low growth?
a. poorly enforced property rights b. outward-oriented trade policies c. policies that permit foreign investment d. All of the above are correct.