A nationwide concentration ratio is likely to understate market power when
A. A market is perfectly contestable.
B. The true markets are local and small.
C. There is extensive foreign competition.
D. Firms sell nationally.
Answer: B
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An increase in government expenditure on goods and services leads to the
A) aggregate supply curve shifting rightward. B) aggregate supply curve shifting leftward. C) aggregate demand curve shifting rightward. D) aggregate demand curve shifting leftward. E) potential GDP increasing.
Which of the following is NOT correct?
a. Many economist oppose increases in how much people save. b. Saving is an important long-run determinant of a nation's standard of living. c. A change in tax laws that encouraged greater saving would lower interest rates. d. Taxes on interest income can substantially decrease the future value of current saving.
The U.S. did not lapse back into a depression after World War II ended for all of the following reasons EXCEPT
A. a larger role taken on by the federal government. B. pent up demand for housing and automobiles. C. government programs that aided the trend toward suburbanization. D. a return to laissez-faire economic policies.
In international financial transactions, what are the only two things that individuals and firms can exchange?
A. Currency and real assets. B. Services and manufactured goods. C. Preexisting assets and currently produced goods and services. D. Currency and currently produced goods and services.