Which of the following is NOT a capital good?
A. A new apartment building purchased by a corporation
B. Batteries purchased by a car manufacturer to install in new cars
C. A new house purchased by a family
D. Machines purchased by a car manufacturer to measure metal thicknesses
Answer: B
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A tax where wealthy people pay a larger percentage of their income than poor people is known as a(n):
a. excise tax. b. flat tax. c. proportional tax. d. progressive tax. e. regressive tax.
Which of the following is not one of the ways that antitrust laws promote competition?
a. Antitrust laws allow the government to prevent mergers. b. Antitrust laws allow the government to break up companies into smaller ones. c. Antitrust laws prevent companies from coordinating their activities in ways that make markets less competitive. d. Antitrust laws allow the government to shut down any firm the government believes has monopoly power.
Asymmetric information in a transaction can result in:
A. moral hazard. B. a lemons problem. C. adverse selection. D. All of these statements are true.
Refer to Figure 2-1. Along the production possibilities frontier, the most efficient point of production depicted is:
A. Point B B. Point C C. Point D D. All points on the production possibilities frontier are equally efficient.