Laissez-faire advocates believe that the government should
a. nationalize certain industries
b. not provide tax incentives to firms for research
c. foster an environment that is favorable to research
d. actively use price controls when excess profits are earned
e. outlaw monopolies which use research to further their power
C
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When an economy is operating efficiently, which is TRUE?
A) All resources are fully employed. B) It would be possible to increase the output of 1 good without decreasing the output of the other. C) Resources are not fully employed or current technology is not being fully utilized. D) This economy is operating to the right of its production possibilities curve (PPC).
If the number of employed persons equals 180 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 210 million, the unemployment rate equals ____ and the labor force participation rate equals ____
a. 7.1%; 85.7% b. 7.7%; 85.7% c. 7.1%; 92.9% d. 7.7%; 92.9%
If an increase in the price of one good causes buyers to demand more of another good, then the two goods are:
A. normal goods. B. inferior goods. C. substitutes. D. complements.
Economies and diseconomies of scale explain:
A. the profit-maximizing level of production. B. why the firm's long-run average total cost curve is U-shaped. C. why the firm's short-run marginal cost curve cuts the short-run average variable cost curve at its minimum point. D. the distinction between fixed and variable costs.