Depreciation
a. does not change the level of capital in the economy.
b. is the decrease in the capital stock because of wear and tear
c. is also known as capital consumption.
d. Both answers B and C are correct.
Answer: d. Both answers B and C are correct.
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A monopoly or group of firms acting together as a monopoly
a. cannot perform the economic task of resource allocation b. allocates resources in the most efficient way possible c. misallocates resources by producing more output than a competitive industry would d. misallocates resources by producing where the marginal benefit of the final unit produced exceeds its marginal cost e. misallocates resources by producing where the marginal benefit of the final unit produced is less than its marginal cost
The Irish production possibilities curve shifts to the left when there is
a. an increase in the Irish labor supply b. innovation in the production of Irish goods c. a civil war that destroys much of Ireland's resource base d. unemployment among Irish workers e. a choice among the Irish of more capital goods last period
When a law is passed that requires businesses to obtain permission from government officials in order to enter a market, this is an example of
a. price-control legislation. b. a barrier to entry c. antitrust legislation. d. the invisible hand principle.
Economic growth may face environmental limits because:
A. the market mechanism mobilizes resources to deal with shortages. B. economic growth may lead to less, not more, pollution. C. global environmental problems are not handled by markets or national governments. D. economic growth can take the form of new, different, and "cleaner" goods and services.