Which of the following is an imperfection of market economies?
A. They produce inexpensive services but expensive manufactured goods.
B. They place undue importance on the needs of future generations.
C. They cannot provide certain goods such as national defense.
D. They distribute income too unequally.
Answer: D
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The balance of payments schedule can be expressed as
a. X(Yƒ, ?) ? Z(Y, ?) ? F(r ? rƒ) = 0 b. X(Yƒ + ?) + Z(Y, ?) ? F(r ? rƒ) = 0 c. X(Yƒ, ?) ? Z(Y, ?) + F(r ? rƒ) = 0 d. X(Yƒ, ?) + Z(Y, ?) + F(r ? rƒ) = 0
Which of the following is true of a recessionary gap? a. It develops when the expected price level is less than the actual price level
b. In the long run, this gap closes when resource suppliers negotiate lower resource payments. c. It measures the amount by which actual output is greater than the economy's potential output. d. In the long run, this gap closes when the short-run aggregate supply curve shifts rightward. e. In the long run, this gap closes when the aggregate demand curve shifts rightward.
Those who believe that overall economic growth is more important than the distribution of income would say that:
A. if everyone is getting richer, the relative speed of these gains isn't as important. B. it is fundamentally unjust for some people to have so much when others have so little. C. if the society is not getting richer, then things can never become more equal. D. All of these are true.
Adding more resources causes:
A. downward movement along a production possibilities curve. B. the production possibilities curve to shift in. C. upward movement along a production possibilities curve. D. the production possibilities curve to shift out.