If complete equality of income were legislated, which of the following would economics predict?
a. People would become richer.
b. Society would gain utility from the extra goods produced.
c. Individuals would willingly work longer hours and thus produce more.
d. The incentive to produce and perform efficiently would be virtually eliminated.
D
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The agency responsible for regulating the U.S. monetary system is the
a. U.S. Treasury b. Federal Reserve c. Department of Justice d. Federal Trade Commission
A good is classified as inferior if:
A. consumers buy less when the price rises. B. consumers buy less when income rises. C. consumers buy less when the price falls. D. consumers buy more when income rises.
The Hart-Scott-Rodino Act of 1980:
A. extended antitrust legislation to proprietorships and partnerships. B. made it legal to monopolize a market. C. outlawed asset-purchase mergers that would substantially reduce competition. D. outlawed price discrimination for the purpose of reducing competition.
A seller's verbal assurance that a used car is a plum (high-quality car):
A. is not effective at reducing the problems associated with asymmetric information. B. is an effective way for sellers to prove that the good they are selling is of high quality. C. is a more efficient way to prove high quality than a money-back guarantee because it does not cost the seller any money to make the assurance. D. provides the same protection against adverse selection than does a repair guarantee.