Answer the following questions true (T) or false (F)
1. When voluntary exchange takes place, neither party gains from the exchange.
2. A college must decide if it wants to offer more adult literacy classes. This decision involves answering the economic question of "what to produce."
3. In a centrally planned economy, the households and firms decide how economic resources will be allocated.
Answer:
1. False.
2. True.
3. False.
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Which term refers to industry conditions, such as number of sellers and the type of products that are sold?
a. Market structure b. Perfect competition c. Economic structure d. Financial market
A common measure of inflation is the percentage change in the CPI of adjacent years
Indicate whether the statement is true or false
In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals
A) 25 percent. B) 80 percent. C) 30 percent. D) an undetermined amount given the lack of information.
The primary reason conglomerate mergers are the most difficult to attack under the antitrust laws is that
a. these mergers always involve a domestic firm and a foreign firm b. these mergers always involve the largest corporations in the United States c. there is no statute the government can use to attack them in court d. these mergers do not increase concentration in any market e. these mergers are always beneficial