Which of the following is a source of government failure but is not typically an example of market failure?
A. Waste.
B. Externalities.
C. Monopoly.
D. Inequity.
Answer: A
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Which of the following is not a component of aggregate expenditure?
A) government spending B) actual investment spending C) planned investment spending D) consumption spending
Insurance premiums represent:
A. the expected value of the payout the company will give to individuals who are insured. B. more than the expected value of the payout the company will give to individuals who are insured. C. less than the expected value of the payout the company will give to individuals who are insured. D. peace of mind and are unrelated to the expected value of the payout the company will give to individuals who are insured.
History suggests that economic competition is the most consistent force for economic growth and progress.
Answer the following statement true (T) or false (F)
Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 9 percent per year while its population grew 8 percent annually. Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 7 percent annually. If the forecasters are correct, which of the following will be TRUE?
A. The annual rate of growth of per capita real GDP will increase from 1 percent to 3 percent. B. The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent. C. The annual rate of growth of per capita real GDP will increase from 1 percent to 8 percent. D. The annual rate of growth of per capita real GDP will decline from 3 percent to 2 percent.