The market and public sector are similar in that
A) there is competition among the participants in both sectors.
B) the resources used in both sectors are scarce.
C) the participants in both sectors react to incentives.
D) All of the above are true.
Answer: D
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How has the pattern of fluctuations in overall U.S. business activity changed since World War II?
A) It has become less volatile. B) Expansions have been eliminated. C) Contractions have been eliminated. D) Recessions have been eliminated.
How the price of a depletable resource changes over time depends on
a. how the technology of resource extraction changes. b. the interest rate. c. how the technologies of production change in firms that use the resource. d. All of the above are correct.
Which of the following best describes an economy with full employment?
A. "Full employment occurs only when the economy has a zero percent unemployment rate." B. "No person is unemployed for whatever reason." C. "The level of unemployment that corresponds to the normal friction in the labor market." D. "Everyone who is looking for a job will have one."
So-called business cycles refer to the multi-year periods:
A. From when new products are launched to the point when they become obsolete B. Between the purchases of new capital equipment and the point when they become junk C. From the origination of a business loan to the retirement or full repayment of the loan D. During which the economy's overall output and employment expands and contracts